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Henderson Group and Janus Capital agree $6 billion merger

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Staff Writer | October 3, 2016
Henderson Group has agreed a $6 billion "merger of equals" with New York-listed fund management Janus Capital, with a proposal to cancel the company's London listing.
Janus Capital
Merger   A company with more than $320 billion in assets
The combination, which will create a company with more than $320 billion in assets under management when it completes as expected in the second quarter of 2017, will leave the UK company's shareholders owning 57% of the enlarged group.

Via a proposed primary listing on NYSE as the LSE listing is cancelled on cost grounds but the existing Henderson ASX listing retained.

Henderson's final dividend this year will be paid but its planned 25m pounds share buyback has been cancelled, while Janus will pay a final and a quarterly payout.

In effect a nil-premium offer, the merger will be effected via a share exchange with each Janus share swapped for 4.7190 newly issued shares in Henderson, with Janus' majority owner Japan's Dai-ichi Life pledging to continue its support

Proposed joint chief executive officers, Henderson's Andrew Formica and Janus' Dick Weil with Henderson's Roger Thompson the proposed finance chief, highlighted the strong potential for growth and have already targeted at least $110m of annual cost savings to be taken out over the next three years.

Their ambition is to increase new flows by 2-3 percentage points per year, with Henderson already having a stretching target of 6-8%.


 

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