Disposal of Guernsey Subsidiary


 
TIDMSAM 
 
For immediate release: 0700hrs, Monday 10 January 2011 
 
                        Syndicate Asset Management Plc 
 
                  ("Syndicate", the "Company" or the "Group") 
 
                        Disposal of Guernsey Subsidiary 
 
Further to the Company's interim results announcement on 7 December 2010, the 
Directors of Syndicate Asset Management Plc (AIM: SAM), the fund management 
group, are pleased to announce the sale of its Guernsey based investment 
management company, Syndicate Asset Management (C.I.) Limited ("Syndicate 
C.I.") for a total consideration of approximately GBP1.8 million 
("Consideration") to Hume Capital LLP. 
 
The Consideration is to be satisfied by a cash payment to the Company at 
completion of GBP850,000 for the goodwill of Syndicate C.I., a pound for pound 
payment for the net assets of Syndicate C.I. at the date of completion, which 
is expected to be approximately GBP440,000 (but which is subject to potential 
adjustments following the preparation of the completion accounts for Syndicate 
C.I. as at 31 December 2010) and the writing-off of the existing inter-company 
loan provided by Syndicate C.I. to Syndicate of approximately GBP530,000. 
 
Syndicate C.I., which is the appointed manager of the Zenith Funds, made an 
operating loss of GBP384,000 and a reportable segment loss before tax to the 
Group of GBP546,000 for the year ended 31 March 2010. Revenue for the same period 
was GBP2.69 million. 
 
The Zenith Funds provide individuals and financial intermediaries a range of 
investment funds and multi-manager investment funds available in Euros, 
Sterling and US Dollars and invested in multiple asset classes. The Zenith 
Funds total approximately GBP238 million as at 30 November 2010. 
 
Peter Dew, Syndicate Asset Management, Chairman, commented: 
 
"The Board is delighted to have concluded the sale of its Guernsey operation 
which, following a strategic review, was viewed as non-core to the Group's 
activities." 
 
Nitin Parekh, Hume Capital LLP, CEO, commented: 
 
"Hume Capital is an independently owned UK investment firm specialising in 
active fund management. Our objective is to build a strong asset management 
business focused on delivering outstanding investment performance and client 
service in a manner which aligns the interest of clients, the firm and its 
employees. We are very excited about the opportunity to acquire a business with 
such a high quality client base and look forward to working closely with the 
Funds' boards to enhance and develop the current range of funds." 
 
-Ends- 
 
Further information: 
 
Syndicate Asset Management plc 
 
Peter Dew (Chairman) Tel: 020 7659 8060 
 
Cenkos Securities plc 
 
Stephen Keys/Julian Morse Tel: 020 7397 8900 
 
GTH Communications 
 
Toby Hall/Christian Pickel Tel: 020 3103 3903 
 
 
 
END

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