UK – UK stockbroker Teather & Greenwood has agreed to sell part of its investment management business to Prudential-Bache Ltd., the UK-based investment advisory business of Prudential-Bache International, for up to 3.65 million pounds.
Teather & Greenwood Investment Management (TGIM) provides execution-only broking, investment advice and investment management services to private clients, charities, pension funds, trustees, local authorities and other government bodies.
In addition, TGIM operates three open-ended investment companies, a specialist tax-efficient advisory service to clients and an on-line dealing service.
Ken Ford, chief executive officer at T&G, said that the disposal of parts of TGIM would provide T&G with cash to reduce borrowings and to invest in more profitable areas of the group.
“We have given strategic priority to the business relating to smaller companies (comprised of agency sales, research, corporate finance and market making), closed-end funds, fixed income and convertible securities, derivatives products (and, in particular, contracts for difference) and large and mid cap agency sales,” said Ford.
Thirteen of TGIM’s 36 employees will be transferred to Prudential-Bache Ltd., nine will remain at T&G and the remaining 14 will be made redundant, and the sale represents a transfer of 679 million pounds in assets under management to Prudential-Bache.
Said Stephen Massey, chairman and chief executive officer of Prudential-Bache International: “Our strategy is to continue enhancing the company’s global private client capabilities. This transaction with TGIM allows us to add scale to our existing UK private client business and better position Prudential-Bache as a local advisor with global capabilities.”
The continuing business of TGIM will include the provision of three open-ended investment companies, and on-line trading and client trading.
The part of the business being sold represents around 11.4% of the T&G’s revenues for the 12-month period to 30 April 2004 - approximately 3.9 million pounds.
T&G put TGIM up for sale in the second half of last year and the deal is expected to be completed by May 31.
Prudential Financial companies, with approximately 533 billion dollars in total assets under management and administration as of September 30, 2002.