Completion of Prudential Financial, Inc. (US) acquisition of American
Skandia
On 20 December 2002 it was announced that Prudential Financial, Inc.
(US) aquires American Skandia. The transaction has now been completed
after all necessary regulatory approvals having been obtained.
Prudential Financial, Inc. (US) acquisition of American Skandia was
completed on 1 May 2003.
The transaction
The transaction values American Skandia at USD 1,150 million as per 30
September 2002, including both external and intra-group borrowings. Most
of the funds will be used to repay external loans. Skandia's external
borrowings amounted to SEK 9.6 billion as per 31 December 2002. The
transaction entailed a negative result impact of SEK 4.4 billion for
Skandia, which was charged in its entirety against 2002 earnings.
Guarantee commitments
The transaction agreement contains customary representations and
warranties and similar guarantee commitments, which are limited as to
time and amount. The maximum accumulated guarantee amount is limited to
USD 1 billion. Certain warranties pertain to litigation. American
Skandia is currently party to a class action suit. In Skandia's opinion,
which is shared by external counsel, this suit is without merit.
For further information, please contact:
Ulf Spång, Senior EVP, tel +46706642905
Odd Eiken, EVP Communications and Strategy, Skandia, tel. +46 8 788 2880
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