Morgan Stanley announced Monday that it will sell its retail asset management business to Invesco Ltd. in a cash and stock deal valued at US$1.5 billion.
Under the terms of the definitive agreement, Morgan Stanley will receive a 9.4% interest in Invesco, allowing it to participate in the future growth of the combined businesses.
Morgan Stanley said that the transaction allows the firm to focus on its institutional client base. Morgan Stanley Investment Management will continue, comprised of several distinct institutional-focused businesses, including a long-only institutional business, a direct hedge fund business, a fund of funds business, a liquidity business, and a merchant banking business, including the firm’s real estate, private equity and infrastructure units.
The restructured MSIM would have approximately US$267 billion in assets under management on a pro-forma basis as of Sept. 30.
The transaction, which has been approved by the boards of directors of both companies, is expected to close in mid-2010, subject to customary closing conditions and regulatory approvals.
Morgan Stanley to sell retail business to Invesco
Restructured firm to focus on its institutional clients
- By: James Langton
- October 20, 2009 October 20, 2009
- 07:54