$200m stake for sale

Peregrine Investment Holdings, the Hong Kong merchant bank, is set to make $200m by selling nearly all of its stake in Invesco, the London-based fund management group. Peregrine will have trebled its money in less than three years, having originally bought up its 24.1 per cent stake at prices between 55p and 77p per share.

Invesco shares yesterday closed down 20p at 238p amid disappointment that Peregrine will not be bidding for all of the company.

The share price dropped despite good results, with Invesco reporting interim pre-tax profits of pounds 25.8m compared with pounds 18.7m last year. The dividend was up 40 per cent to 1.75p.

"Invesco has got a lot going for it. It has seen a lively US market, and margins continue to improve on the strength of efficiency gains,' said Simon Whittock, analyst with Smith New Court.

Invesco increased its funds under management by 12 per cent to pounds 47bn, the bulk of which is in the US. Most of the Peregrine stake is being offered to American investors, helping Invesco broaden its shareholder base in its main market. Invesco also said it will be seeking a full listing on the New York Stock Exchange.

"We think asset management is beginning to be a major growth industry. Invesco has paid the price, getting people in place across the world, and is now well positioned to take advantage of this global growth," said Charles Brady, Invesco's chairman.

Philip Tose, chairman of Peregrine, said he was selling out because the stake had become too dominant a passive investment. "We couldn't take Invesco over, much as we would have like to have done, because of the high level of goodwill," he said.

Invesco is now one of the select group of major British quoted asset managment businesses, around which areprowling a number of banks, insurance companies and investment houses, domestic, European and American. "We would like to stay independent," said Mr Brady. "At some point we could acquire someone, we are generating the funds for this."

Comment, page 15

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Mortgage Advisor - OTE £95,000

£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...

SThree: Trainee Recruitment Consultant

competitive: SThree: Are you passionate about sales?Do you have a keen interes...

Recruitment Genius: Loan Adviser - OTE £30,000

£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Day In a Page

Greece debt crisis: EU 'family' needs to forgive rather than punish an impoverished state

EU 'family' needs to forgive rather than punish an impoverished state

An outbreak of malaria in Greece four years ago helps us understand the crisis, says Robert Fisk
Gaza, a year on from Operation Protective Edge: The traumatised kibbutz on Israel's front line, still recovering from last summer's war with Hamas

Gaza, a year on from Operation Protective Edge

The traumatised kibbutz on Israel's front line, still recovering from last summer's war with Hamas
How to survive electrical storms: What are the chances of being hit by lightning?

Heavy weather

What are the chances of being hit by lightning?
World Bodypainting Festival 2015: Bizarre and brilliant photos celebrate 'the body as art'

World Bodypainting Festival 2015

Bizarre and brilliant photos celebrate 'the body as art'
alt-j: A private jet, a Mercury Prize and Latitude headliners

Don't call us nerds

Craig Mclean meets alt-j - the math-folk act who are flying high
How to find gold: The Californian badlands, digging out crevasses and sifting sludge

How to find gold

Steve Boggan finds himself in the Californian badlands, digging out crevasses and sifting sludge
Singing accents: From Herman's Hermits and David Bowie to Alesha Dixon

Not born in the USA

Lay off Alesha Dixon: songs sound better in US accents, even our national anthem
10 best balsamic vinegars

10 best balsamic vinegars

Drizzle it over salad, enjoy it with ciabatta, marinate vegetables, or use it to add depth to a sauce - this versatile staple is a cook's best friend
Wimbledon 2015: Brief glimpses of the old Venus but Williams sisters' epic wars belong to history

Brief glimpses of the old Venus but Williams sisters' epic wars belong to history

Serena dispatched her elder sister 6-4, 6-3 in eight minutes more than an hour
Greece says 'No': A night of huge celebrations in Athens as voters decisively back Tsipras and his anti-austerity stance in historic referendum

Greece referendum

Greeks say 'No' to austerity and plunge Europe into crisis
Ten years after the 7/7 terror attacks, is Britain an altered state?

7/7 bombings anniversary

Ten years after the terror attacks, is Britain an altered state?
Beautiful evening dresses are some of the loveliest Donatella has created

Versace haute couture review

Beautiful evening dresses are some of the loveliest Donatella has ever created
No hope and no jobs, so Gaza's young risk their lives, climb the fence and run for it

No hope and no jobs in Gaza

So the young risk their lives and run for it
Fashion apps: Retailers roll together shopping and social networking for mobile customers

Fashion apps

Retailers roll together shopping and social networking for mobile customers
The Greek referendum exposes a gaping hole at the heart of the European Union – its distinct lack of any genuine popular legitimacy

Gaping hole at the heart of the European Union

Treatment of Greece has shown up a lack of genuine legitimacy