Benzinga | Aug 18, 2021 04:31PM EDT

Federated Hermes Acquires Remaining 29.5% Stake In Hermes Fund Managers Limited; Co. Tp {au $161.5M

Federated Hermes, Inc., (NYSE:FHI) a global leader in active, responsible investing, has today agreed to the acquisition of the remaining 29.5% interest in Hermes Fund Managers Limited (HFML) held by BT Pension Scheme (BTPS).

Federated Hermes acquired a 60% majority interest in HFML from BTPS in 2018. The transaction provided a call option for Federated Hermes to purchase the rest of HFML and gave BTPS a put option to sell its residual shareholding in HFML, in both cases between three-to-six years after the original agreement.

Both parties have now agreed to close a transaction for BTPS's remaining 29.5% interest in HFML on 31 August, 2021. BTPS and Federated Hermes have agreed to an independent fair valuation of HFML of ?394.9 million, (approximately $547.4 million). Consequently, Federated Hermes will pay ?116.5 million, (approximately $161.5 million) to BTPS for its remaining shares in HFML. Federated Hermes will fund the transaction through a combination of cash and borrowings from its existing credit line. An employee benefit trust continues to hold approximately 10% of HFML for the benefit of certain members of HFML's management and key employees.