Fortis takes control of Artemis
Belgo-Dutch bank Fortis has taken over Edinburgh funds house Artemis, increasing its majority shareholding to make it the sole owner of group. However, the troubled bank is expected to sell the UK-based asset manager to a third party within months.
Fortis, which owned 67.1% of Artemis, paid €397m (£317m) for the rest of the business, according to a statement published today. The rest of the stock was held by Artemis management and an investment trust managed by Artemis. The deal values Artemis at €1.2bn.
Dick Turpin, managing director at Artemis, said in a letter to clients: "Fortis has advised us of its desire to explore strategic options for its investment in Artemis. This process may lead to the transfer of Fortis’ shareholding in Artemis to a third party."
Fortis inherited its stake in Artemis earlier this year, and confirmed in a statement today it was discussing "strategic options" with its management. Sources familiar with the situation expect a deal within months, pointing out that a successful deal would require the cooperation of Artemis management, which has won mandates totalling more than €1.2bn in the year to date.
US fund group Affiliated Managers Group will remain a frontrunner to clinch a deal but Federated Investors and Franklin Templeton, two other US managers, have been named as alternative bidders.
The news comes days after Fortis received €11.2bn from the governments of Belgium, Luxembourg and the Netherlands, after BNP Paribas and ING Group walked away from talks to buy the bank over the weekend.
Fortis was close to a deal with AMG, but after receiving state backing it became unwilling to sell the Artemis at a distressed price, according to analysts.
ABN Amro Asset Management took its original stake in Artemis in 2002, which transferred to Fortis in April. Artemis was established in 1997, and manages more than €19bn.
--write to pcraig@efinancialnews.com; mfoster@efinancialnews.com
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