Acqn of Fleming Offshore Bkg
Old Mutual PLC
19 April 2001
Old Mutual plc
Acquisition of Fleming Offshore Banking
Nedcor and Old Mutual join forces in offshore private banking venture
Major South African banking group Nedcor has entered into an agreement to
acquire Fleming Offshore Banking, from owners J.P. Morgan Chase & Co., subject
to regulatory consent. Fleming Offshore Banking operates from the Isle of Man
and Jersey.
The acquisition sees Nedcor join forces with its parent company Old Mutual
pPlc, which will transfer its Guernsey-based fiduciary business into the new
company. The enlarged private bank will offer clients a full range of offshore
banking, investment and fiduciary services for the benefit of local and
international high net worth clients.
'From a Nedcor perspective, this acquisition has huge significance, not only
because of what it means for the clients of Nedbank Syfrets Private Banking,
but also because it marks a substantial enhancement of our international
offering in partnership with Old Mutual,' says Nedcor chief executive Richard
Laubscher.
Mike Levett, Chairman and Chief Executive Old Mutual plc. said 'Our leading
private client and offshore investment businesses have planned for some time
now to add a private banking service to complement and complete their services
for customers. I am delighted that we have been able, in partnership with
Nedcor to acquire Fleming Offshore Banking, in partnership with Nedcor to
enable us to enhance our existing services.'
Nedcor and Old Mutual have recently embarked on a series of joint initiatives
in the South African market, aimed at integrated offerings of assurance and
banking products across all segments of the individual client market. 'This
offshore development is a further step in the continuing process of working
together for the benefit of our respective client bases,' says Laubscher.
The new entity will be renamed Gerrard Private Bank, an appropriate extension
of the Gerrard brand. Gerrard, part of the Old Mutual plc group, is a leading
private client wealth management firm in the UK. Gerrard Private Bank will
offer a discreet and comprehensive private banking service for wealthy clients
offshore.
In terms of the acquisition, Nedcor will retain hold a 74 per cent equity
stake in the renamed Gerrard Private Bank, with Old Mutual holding the
remaining 26 per cent.
Nedcor's purchase will be financed by funds held outside South Africa, while
Old Mutual will transfer the operations of Fairbairn Trust Company into
Gerrard Private Bank in exchange for its stake. Old Mutual plc will have the
option to increase its stake to 51 per cent within the next four years.
At the end of the first quarter 2001 Fleming Offshore Banking had net assets
of approximately £24 million. The deal is subject to regulatory approval in
Guernsey, Jersey, the Isle of Man and South Africa.
19 April 2001
ENQUIRIES:
Nedcor Tel: 020 7203 4202
Frank Le Roex, General Manager
Old Mutual plc Tel: 020 7569 0100
Zoleka Mzimba, Corporate Communications
College Hill Tel: 020 7457 2020
Nicholas Williams
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