LONDON, April 1 (Reuters) - Aberdeen Asset Management will pay Lloyds Banking Group a 39.4 million pound ($65.7 million) “top-up” payment for the purchase of Scottish Widows Investment Partnership (SWIP), which may lift the UK bank’s stake in Aberdeen to near 11 percent.
Aberdeen completed the 550 million pound purchase of SWIP on Tuesday, and under the terms of the deal agreed in November it has to pay the top-up to Lloyds to compensate for a fall in its share price below 420 pence.
Lloyds, which is a quarter owned by the UK government, is getting a 9.9 percent stake in Aberdeen from the deal. Aberdeen has to pay the top-up in a year’s time, and can pay in cash or shares, which would lift Lloyds’ stake to about 10.6 percent at Aberdeen’s current price of 410p.
Aberdeen may also pay Lloyds up to another 100 million pounds in cash over the next five years, depending on how well the Lloyds assets perform.
Aberdeen said on Tuesday it planned to cut costs after weakness in emerging markets drove more money out of its funds in the first two months of the year. ($1 = 0.5998 British Pounds) (Reporting by Steve Slater; Editing by Erica Billingham)