EXHIBIT 99
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[Logo] One Franklin Parkway
San Mateo, CA 94403-1906
tel 650/312.2000
franklintempleton.com
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Contact: Franklin Resources, Inc.
Investor Relations: Alan Weinfeld (650) 525-8900
Corporate Communications: Lisa Gallegos (650) 312-3395
franklintempleton.com
Contact: Darby Overseas Investments, Ltd.
Media Relations: Emily Vogl, Frank Vogl
Voglcom@aol.com (202) 331-8183
darbyoverseas.com
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FOR IMMEDIATE RELEASE
FRANKLIN RESOURCES, INC. ANNOUNCES AGREEMENT TO ACQUIRE
EMERGING MARKETS PRIVATE EQUITY AND MEZZANINE SPECIALIST,
DARBY OVERSEAS INVESTMENTS, LTD.
San Mateo, CA, and Washington, DC, August 04, 2003 - Franklin Resources,
Inc. (operating as Franklin Templeton Investments) (NYSE: BEN) of San Mateo, CA,
and Darby Overseas Investments, Ltd. of Washington, DC, today announced that
they have signed a definitive agreement under which Franklin Resources, Inc.
will acquire the remaining portion of Darby Overseas Investments, Ltd. and Darby
Overseas Partners, L.P. (collectively "Darby") which it does not already own,
for $75.88 million in cash. Franklin Resources, Inc. currently owns 12.66% of
Darby, which managed approximately $700 million in private equity and mezzanine
funds and managed and sub-advised approximately $300 million in emerging markets
fixed-income products as of June 30, 2003. The transaction, which is subject to
certain regulatory approvals and other customary closing conditions, is expected
to be completed no later than October 10, 2003.
"We are very pleased to bring Darby Overseas Investments on board to expand
our investment offerings in the alternative strategies arena and further meet
the needs of our institutional and Fiduciary individual clients," said Charles
B. Johnson, chairman and chief executive officer of Franklin Resources, Inc.,
who has served on Darby's Board of Directors since its establishment in 1994.
"Darby's strong brand recognition and established track record in emerging
markets private equity and mezzanine finance make it an excellent fit and solid
strategic investment for our organization."
Darby's chairman and founder is Nicholas F. Brady, former secretary of the
US Treasury and former chairman and CEO of Dillon, Read & Co. Inc. He is
especially well known in emerging markets and international finance as the
architect of the "Brady Plan." Darby's chief executive officer is Richard H.
Frank, former managing director of the World Bank and former chief financial
officer of the International Finance Corporation. Mr. Brady, who since 1993 has
served as a director of 17 Franklin Templeton
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Investments' funds for US and non-US investors, stated, "Our union with Franklin
Templeton Investments will enable us to more effectively channel resources to
emerging markets companies with the best growth potential. This is a combination
of two outstanding firms that will provide exceptional leadership in emerging
markets finance."
Darby will continue to retain its distinct identity under the leadership of
Mr. Brady and Mr. Frank with its team of experienced emerging markets investment
managers, drawn from both the private and public sectors. Their approach is
based on a rigorous investment process and active company relationships. The
group's experience and strong business relationships come from years of working
and living in their respective regions.
As one of the initial investors in Darby, Franklin Templeton Investments
has also participated in three of Darby's six emerging markets private equity
and mezzanine funds. "We have had the opportunity to witness Darby's growth and
disciplined approach firsthand," said Charles B. Johnson. "They have become a
leading emerging markets private equity firm with a standard of excellence that
we are committed to supporting."
Darby CEO Richard Frank noted, "Darby will benefit from Franklin
Templeton's outstanding reputation and international presence. With this
support, we look forward to expansion by launching new private equity and
mezzanine funds in emerging markets." Mr. Frank, a director of two Franklin
Templeton Investments' funds for non-US investors added, "With their strong
distribution capabilities and established presence in markets around the globe,
they are uniquely positioned to support our objective of being the industry
leader in emerging markets private equity and mezzanine finance."
"The contributions of Darby's private equity group will complement Franklin
Templeton Investments' broad global investment capabilities," said Mark Mobius,
managing director of Templeton Asset Management, Ltd. His group specializes in
investing in emerging markets. "By serving on Darby's Advisory Board over the
last few years, I have had the opportunity to work with the firm on its
investment policies and strategic direction, and believe this team has
established itself as a proven leader, most notably in Latin America, with a
strong presence in Asia and with plans for Central Europe as well," said Mobius.
"Emerging markets private equity requires a highly specialized skill set, and
Darby has demonstrated its investment capabilities throughout various stages of
the company value creation cycle."
Darby sponsors and manages funds for institutional investors and high-net
worth individuals that invest in Latin American private equity (including
specialized financial services and technology funds). Darby, through funds in
Asia and Latin America, is the leading private mezzanine investment firm for
emerging markets. In addition, Darby has been an active manager of and advisor
for emerging market fixed-income portfolios. For more information, please visit
darbyoverseas.com.
Franklin Resources, Inc. [NYSE:BEN] is a global investment organization
operating as Franklin Templeton Investments. Franklin Templeton provides global
and domestic investment management services through its Franklin, Templeton,
Mutual Series and Fiduciary Trust subsidiaries. The San Mateo, CA-based company
has over 50 years of investment experience and approximately $287 billion in
assets
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under management as of June 30, 2003. For more information, please call
1-800/DIAL BEN or visit franklintempleton.com.
FORWARD-LOOKING STATEMENTS
Statements in this press release regarding Franklin Resources, Inc.'s
business which are not historical facts are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve a number of risks, uncertainties and other
important factors that could cause the actual results and outcomes to differ
materially from any future results or outcomes expressed or implied by such
forward-looking statements. These risks, uncertainties and other important
factors are described in more detail in the "Risk Factors" section in Franklin's
recent filings with the U.S. Securities and Exchange Commission, including,
without limitation, the "Risk Factors" section of the Management's Discussion
and Analysis of Financial Condition and Results of Operations in Franklin's
Annual Report on Form 10-K for the fiscal year ended September 30, 2002, and
Franklin's most recent Form 10-Q.
* Continuing volatility in the equity markets have caused the levels of
our assets under management to fluctuate significantly.
* Weak market conditions may lower our assets under management and
reduce our revenues and income.
* We face strong competition from numerous and sometimes larger
companies.
* Changes in the distribution channels on which we depend could reduce
our revenues or hinder our growth.
* The ongoing threat of terrorism and the recent reports of accounting
irregularities may adversely affect the general economy, financial and
capital markets and our business.
* We face risks associated with conducting operations in numerous
foreign countries.
* Our emerging market portfolios and related revenues are vulnerable to
market-specific political and economic risks.
* Our ability to meet cash needs depends upon certain factors, including
our asset value, credit worthiness and the market value of our stock.
* Technology and operating risk and limitations could constrain our
operations.
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