HBOS Group plans to sell just less than half of subsidiary Insight Investment Management's property fund management business through an initial public offering on AIM, the London Stock Exchange's smaller-companies market, according to a statement from Insight issued today. HBOS will retain a majority stake of up to 55% in the business, which has £8 billion ($15.21 billion) in assets under management and will be called Invista Real Estate Investment Management Holdings.
The deal will allow Invista senior management to take stakes in the company and to convert existing "phantom" Insight shares - hypothetical shares that can be converted to cash based on internal valuations of what the company is worth - into actual, tradeable shares, he said. Senior management will initially receive a stake of "a couple of percent," said Duncan Owen, Invista chief executive.
The IPO is intended to raise £100 million, which will be used to seed new real estate funds and expand the firm's European property funds, he added.
Alastair Ross Goobey, former chief executive of Hermes Pensions Management, was appointed chairman of Invista, said Mr. Owen.