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Monetary manager Invesco Ltd is all set to acquire Morgan Stanley’s retail asset management portfolio, including Van Kampen division. The deal is worth about$1.5 billion.
The $1.5 billion deal is in the form of $500 million in cash and 44.1 million shares. This will enable Morgan Stanley to hold a major part of Invesco’s stakes, which is about 9.4%, meanwhile Invesco’s assets will now become $536 billion.
Morgan Stanley mentioned that this deal will ensure that it can focus more on institutional clients like endowments, pension plans, sovereign wealth funds, central banks etc.
“By taking a minority interest in Invesco, Morgan Stanley will be able to realize significant value in partnership with a world-class player,'' said Morgan Stanley Co-President James Gorman, in a statement. “In addition, this transaction will mitigate certain affiliated product sales restrictions faced by Van Kampen portfolio managers since the closing of the Morgan Stanley Smith Barney joint venture.''
The transaction, which has been approved by the boards of both companies, is expected to close in mid-2010.
Jerry Miller, the President and CEO of Van Kampen, mentioned that Invesco and Van Kampen Investments will be separate business entities till the deal is closed.
“Our organizations have complementary investment strengths, product line-ups, business capabilities, firm cultures and shared values,'' Miller said. “We anticipate a fruitful partnership with a common goal to even better serve our mutual clients”.
