Alliance Trust sells entire stake in Liontrust

Alliance Trust sells entire stake in Liontrust

Alliance Trust has completed the sale of its entire stake in fund management business Liontrust for £21.1m.

Alliance Trust, which is an investment trust and fund platform, came to own the 8 per cent shareholding in Liontrust as a result of the latter acquiring the fund management business of Alliance Trust, Alliance Trust Investments, at the start of 2017.

Alliance Trust was forbidden from selling the shares until now, but with the lock-in period having expired, Alliance Trust completed its exit this morning (24 January).

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Alliance Trust said in a statement to the market that the price they received represented a net gain of 55 per cent.

The company is due to receive a further one million Liontrust shares in April 2018, which it will then be forbidden from selling for one year.

When it acquired Alliance Trust Investments, Liontrust took over the management of 11 funds.

Liontrust shares have been strong performers over the past year, rising from £3.86 on 24 January 2017 to the price on the morning of 24 January 2018 of £5.70.

The company previously reported that its assets under management reached £10bn in November 2017.