Dutch insurer and financial services provider Eureko B.V., announced that it intends to sell up to 44 million ordinary shares in F&C Asset Management plc. Eureko’s holding is currently approximately 19.6 percent; the sale involves around 9.1 percent of F&C’s share capital, reducing Eureko’s stake to 10.5 percent.
Eureko said it is selling the shares in order to further fund its “strategic focus on its development in Central/Eastern Europe, and a decision to re-allocate some of its capital to further expansion in those markets.” Some of the money raised will be used to partially fund the recently announced acquisition of insurance businesses in Turkey, from Garanti Bank.
Eureko’s indicated, however, that its “relationship with, and strategic commitment to, F&C will be unaltered; there will be no change to the investment management contracts with Eureko Group companies, which are subject to long-term mandates. These mandates run at least until 2014 and operate well. Eureko remains a key investor in F&C and is currently its second-largest shareholder.” It will also retain a seat on F&C’s Board of Directors.
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