Integrated Asset Management, an alternative investment group, has signed a conditional agreement to sell the majority of its fund of hedge funds business to Sal. Oppenheim (France), a Paris-based wholly-owned subsidiary of Sal. Oppenheim jr & Cie.
The German private banking group will pay a combined consideration of approximately EUR3.5 million in cash and the cancellation of Sal. Oppenheim’s entire share interest in Integrated of 11,496,111 shares (representing approximately 27.1% of the current outstanding shares).
EUR2 million will be payable in cash immediately upon completion of the disposal with a further payment of approximately EUR1.5 million to be paid in the form of a cash dividend from Altigefi to the company. The scale of the dividend paid by Altigefi will be determined by the excess of cash reserves in Altigefi over regulatory capital at the time of completion.
Under the terms agreed, Integrated will sell its 51% interest in Altigefi, its Paris-based fund of hedge fund manager, to Sal. Oppenheim (France), which already owns the remaining 49% of the equity. As part of the transaction, Integrated will also transfer the management agreements relating to five of its other funds to Sal. Oppenheim (France).
The transaction does not impact Integrated’s brokerage operations in Milan which will continue to operate as usual.
In the six months ended 30 June 2008 the fund of hedge funds business reported unaudited revenues of GBP6.44 million, an unaudited loss after taxation of GBP0.93 million, unaudited net assets of GBP24.42 million and assets under management of USD2,402 million.
In response to the unprecedentedly challenging market conditions of the past nine months, we have structured this deal with Sal. Oppenheim to benefit both our funds’ investors and the company’s shareholders, says Emanuel Arbib, chief executive of Integrated. Once the transaction is completed, Integrated, with a strong and liquid balance sheet, will be well positioned to consider opportunities that are available in today’s marketplace.
L.D.