TIDMVM.
RNS Number : 2608I
Virgin Money Holdings (UK) PLC
20 March 2018
THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION
20 March 2018
VIRGIN MONEY HOLDINGS (UK) PLC (the "Company" or "Virgin
Money")
VIRGIN MONEY AND ABERDEEN STANDARD INVESTMENTS AGREE TO
ESTABLISH A NEW JOINT VENTURE FOR THE PROVISION OF ASSET MANAGEMENT
SERVICES TO CUSTOMERS
-- The proposed joint venture will combine Virgin Money's brand
and retail distribution expertise with Aberdeen Standard
Investment's (ASI) strength in asset management together with
access to the market-leading technology and digital expertise of
ASI
-- The joint venture is expected to transform Virgin Money's
retail investment proposition, driving significant growth in assets
under management and capital-light returns
-- It is anticipated that ASI will acquire 50 per cent of Virgin
Money Unit Trust Managers Limited(1) with the transaction expected
to complete by the end of 2018
Virgin Money and ASI are delighted to announce that they have
agreed in principle to enter into a new strategic joint venture for
the provision of asset management services to Virgin Money
customers. As part of the joint venture, ASI will provide fund
management services and access to its state-of-the-art digital
technology.
Virgin Money currently has over 200,000 retail investment
customers and GBP3.7 billion in assets under management. The
proposed joint venture with ASI will broaden Virgin Money's retail
investment proposition.
It will also extend ASI's strength and depth in providing
customer focused diversified solutions to Virgin Money's existing
investor base and leverage the strength of both brands to increase
assets under management over time.
Jayne-Anne Gadhia, Chief Executive at Virgin Money, said: "Our
new partnership with Aberdeen Standard Investments will bring
together two outstanding innovative brands. We look forward to
using our brand and customer reach, combined with ASI's strength in
asset management and its digital capability, to provide a
market-leading customer proposition.
"This mutually beneficial relationship will give our customers a
broader fund choice and the tools and capability to invest for the
future with confidence. As a result, it offers a compelling
proposition for our customers and offers excellent value for our
shareholders. It is expected to generate significant growth in
assets under management, drive additional capital-light returns and
to be game-changing for our investment business over the longer
term."
Martin Gilbert, Co-Chief Executive at Aberdeen Standard
Investments, said: "We're delighted to be partnering with Virgin
Money to develop their retail investment business. Their customer
focus mirrors that of Aberdeen Standard Investments and we look
forward to working together and sharing a strong and profitable
relationship over many years to come."
Under the terms agreed in principle, and subject to further
mutual due diligence, regulatory and other relevant approvals and
agreement of definitive contracts, ASI is expected to acquire 50
per cent of Virgin Money Unit Trust Managers Limited ("VMUTM") for
an upfront cash payment in excess of GBP40 million which is
expected to result in an increase of approximately 40 basis points
in Virgin Money's CET1 ratio.
Benefits of the strategic partnership
-- Aberdeen Standard Investments will provide Virgin Money with
access to their fund management expertise and market-leading
digital capability, with a view to broadening Virgin Money's retail
investment proposition.
-- This joint venture will enable Virgin Money to provide
customers with access to a broader range of funds and solutions at
a competitive cost.
-- The new joint venture provides a considerable opportunity for
Virgin Money to develop deeper relationships with its existing
customers, and use its brand to attract new customers and deliver
significant growth in assets under management.
-- The combination of Virgin Money's brand and scale and
Aberdeen Standard Investment's market-leading investment solutions
will provide a compelling proposition for customers and excellent
value for shareholders.
Completion of the transaction is expected to take place by the
end of 2018.
In 2017, VMUTM recorded revenues of GBP33.1 million and profit
after tax of GBP10.8 million. Once concluded, Virgin Money expects
to account for the strategic partnership using the equity
accounting method. With closing expected by the end of 2018, there
is expected to be no material impact on 2018 underlying
earnings.
S
Media enquiries:
Virgin Money Aberdeen Standard Investments
Scott Mowbray | Simon Hall Guy Nicholls
0191 279 4676 | press.office@virginmoney.com +44 (0)20 7463 5809
scott.mowbray@virginmoney.com
guy.nicholls@aberdeenstandard.com
Virgin Money Investor Relations
Adam Key
020 7111 1311
adam.key@virginmoney.com
NOTES TO EDITORS:
(1) Virgin Money Unit Trust Managers Limited (VMUTM) is the
entity which holds Virgin Money's Investments and Pensions
business.
About Virgin Money
-- Virgin Money offers savings, mortgages, credit cards, current
accounts, currency services, pensions, investments and protection
products to customers across the UK.
-- Virgin Money's business ambition is to make "everyone better
off" - this philosophy underpins its approach to business by
offering good value to customers, treating employees well, making a
positive contribution to society and delivering a profit to
shareholders.
-- Over 13,900 charities have registered with Virgin Money
Giving and, by the end of 2017, over GBP600 million had been
donated to charities through the service since its launch in 2009,
resulting in an estimated GBP19 million more donated to charities
because of its not-for-profit model.
About ASI
-- Aberdeen Standard Investments is a leading global asset
manager dedicated to creating long-term value for their clients,
and is a brand of the investment businesses of Aberdeen Asset
Management and Standard Life Investments.
-- With over 1,000 investment professionals they manage EUR638
billion* of assets worldwide. They have clients in 80 countries
supported by 50 relationship offices. This ensures they are close
to their clients and the markets in which they invest.
-- They are high-conviction; long-term investors who believe
teamwork and collaboration are the key to delivering repeatable,
superior investment performance. They are resolute in their
commitment to active asset management.
-- Aberdeen Standard Investments is the asset management
business of Standard Life Aberdeen plc, one of the world's largest
investment companies.
-- Standard Life Aberdeen plc is headquartered in Scotland. It
has around 1.2 million shareholders and is listed on the London
Stock Exchange. The Standard Life Aberdeen group was formed by the
merger of Standard Life plc and Aberdeen Asset Management PLC on 14
August 2017.
*Standard Life AUM/AUA data as at 30 September 2017.
The information contained within this announcement is deemed by
Virgin Money to constitute inside information as stipulated under
the Market Abuse Regulation No 596/2014. Upon the publication of
this announcement via a Regulatory Information Service, this inside
information is now considered to be in the public domain.
Forward looking statements
This announcement contains certain forward looking statements
with respect to the business, strategy and plans of Virgin Money
Holdings (UK) plc ("Virgin Money" or the "Group") and its current
goals and expectations relating to its future financial condition
and performance. Statements that are not historical facts,
including statements about Virgin Money's or its directors' and/or
management's beliefs and expectations, are forward looking
statements.
Examples of forward looking statements include, without
limitation, any statements preceded or followed by or that include
the words "targets", "should", "continue", "plans", "proposes",
"believes", "expects", "aims", "intends", "will", "may",
"anticipates", "estimates", "projects" or words or terms of similar
substance or the negative of any such words or terms. Forward
looking statements include, without limitation, statements relating
to the following: (i) future capital expenditures, expenses,
revenues, earnings, capital ratios, synergies, economic
performance, indebtedness, financial condition, dividend policy,
losses and future prospects; and (ii) business and management
strategies and the expansion and growth of Virgin Money's
operations resulting from the proposed transaction.
By their nature, forward looking statements involve risk and
uncertainty because they relate to events and depend upon
circumstances that will or may occur in the future and are based on
certain key assumptions, estimates, judgements or interpretations.
Many factors could cause the actual results or position to differ
materially from those projected or implied in any forward looking
statements. Due to such uncertainties and risks, readers are
cautioned not to place undue reliance on such forward looking
statements.
Any forward looking statements made in this announcement speak
only as of the date they are made and it should not be assumed that
they have been, or will be, revised or updated in the light of new
information of future events. Except as required by the Prudential
Regulation Authority, the Financial Conduct Authority, the London
Stock Exchange plc or applicable law, Virgin Money expressly
disclaims any obligation or undertaking to release publicly any
updates of revisions to any forward looking statements contained in
this announcement to reflect any change in Virgin Money's
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is
based.
If you are in any doubt about the contents of this announcement
or the action you should take, you are recommended to seek your own
independent advice immediately from your stockbroker, bank manager,
solicitor, accountant or independent financial adviser, duly
authorised under the Financial Services and Markets Act 2000 if you
are resident in the United Kingdom, or from another appropriately
authorised independent financial adviser.
Issued by: Virgin Money Holdings (UK) plc
Registered office: Jubilee House, Gosforth, Newcastle upon Tyne
NE3 4PL
Registered in England and Wales (Company No. 03087587).
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDPGUPCWUPRURU
(END) Dow Jones Newswires
March 20, 2018 04:57 ET (08:57 GMT)
Virgin Money (LSE:VM.)
Historical Stock Chart
From Apr 2024 to May 2024
Virgin Money (LSE:VM.)
Historical Stock Chart
From May 2023 to May 2024