According to a Financial Times news report, Powell Duffryn’s trustees were already negotiating with Paternoster and other pension buyout groups when Citi acquired the engineer’s parent company, Nikko Principal Investments, in January.
Paternoster will receive a premium in addition to assuming the plan’s asset portfolio, partly to compensate for being given a relatively short time to conduct due diligence. T he news report said the Powell Duffryn deal is the largest of its kind this year and will generate about £40 million in capital for Citi.
The scheme has 7,000 members, most of whom are already retired, according to the Financial Times.
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