Alliance Trust banks £21m from sale of Liontrust shares

According to a stock exchange announcement, Alliance Trust sold an 8.2 per cent stake ( 4,060,792 shares) in Liontrust for 520p a share, making for a 55 per cent profit over the nine months it held the shares acquired (at a market price of 334.9p) as part of the sale of Alliance Trust Investments to Liontrust.

That deal, completed in April last year, saw Alliance Trust accept just over five million shares, which were valued at around £17m.

Alliance Trust acquired the shares it sold this week in April 2017 and the firm is set to take receipt of a further 1 million shares, which are subject to a one year lock-up, in April this year.

When the ATI acquisition went through the deal was expected to net Alliance Trust £30 million in total, including an upfront cash payment if £3 million.

However, in its stockmarket statement the fund manager said it now believes the strong performance of Liontrust’s shares could see this rise significantly.

The statement reads: “When ATI was sold, it was expected that the net proceeds of the sale would be not less than £25m, before any future contingent consideration.

“Alliance Trust now expects that the net proceeds will be not less than £35m, before any future contingent consideration.”

This week’s sale was conducted by broker Cannacord Genuity in agreement with Liontrust.