Sale of OMI Companies
Old Mutual PLC
12 December 2001
OLD MUTUAL PLC
Old Mutual plc ('Old Mutual') draws attention to the announcement issued today
by Aberdeen Asset Management PLC confirming the acquisition of Old Mutual
International's ('OMI') Isle of Man based offshore life assurance company,
which is in run off having been closed to new business in 1998.
This transaction does not affect the OMI's successful offshore life assurance
and fund management businesses managed from Guernsey nor the offshore private
banking business of Gerrard Private Bank based on the Isle of Man, Jersey and
Guernsey.
Michael Newman, Chairman of Old Mutual Isle of Man said:
'The Old Mutual International Isle of Man transaction removes an obvious
duplication in our corporate structure and enables us to focus even greater
resources on our growth business. Our service to offshore customers through
our Guernsey based Old Mutual International and Gerrard's offshore bank
remains totally unaffected'.
A summary of the transaction is attached.
12 December 2001
ENQUIRIES:
Old Mutual Plc
London Tel: +44 (0) 20 7569 0100
Zoleka Mzimba
Cape Town Tel: +27 (0) 21 509 2732
Bruce Allen
Hook Tel: +44 (0) 1256 743 310
Cheryl Dowler
Isle of Man Tel: +44 (0) 1624 64 5000
Greg Horton
College Hill, London Tel: +44 (0) 20 7457 2020
Kim Milnes
College Hill, Johannesburg Tel: +27 (0) 11 447 3030
Robyn Hunt
Not for release, publication or distribution in or into the United States,
Canada, Australia, Japan or the Republic of Ireland.
Aberdeen Asset Management PLC
Acquisition of Old Mutual International (Isle of Man) Limited
and related companies
Introduction
Aberdeen Asset Management PLC (AND.L) today announces that it has entered into
a conditional contract for the acquisition of the OMI (Isle of Man) Companies.
The acquisition, which is subject to regulatory approval, is part of the
Company's strategy of combining growth through acquisition activity with
organic growth through an increased diversity of distribution channels, a
wider choice of funds and a high level of customer service.
Acquisition of the OMI Companies
Aberdeen Asset Management has agreed, subject to regulatory approval, to
purchase the entire issued share capital of four companies, being Old Mutual
International (Isle of Man) Limited ('OMI'), an Isle of Man life company and
related service and dormant companies in the UK, Isle of Man and Jersey
(together with OMI, the 'OMI Companies') for a consideration of approximately
£36.15 million, consisting of £15.40 million for net assets and £20.75 million
in respect of embedded value.
OMI was incorporated on 4 July 1985 in the Isle of Man. It is a life
insurance company, but has been closed to new business since 1998.
The policyholder funds of OMI are currently in the region of £300 million and
the in-force policies number some 15,000 which, following the transfer of the
investment management arrangements, will benefit the Company by increasing its
funds under management. It is the Company's intention to reopen OMI to new
business, targeting the sale of offshore investment products incorporating a '
life assurance wrapper' through the Company's existing world-wide distribution
channels. It is also the Company's intention to continue to run the acquired
in-force policies as a closed book, allowing only top-ups and increases by
policyholders to the existing policies. The acquired in-force policies are
held by policyholders throughout the world.
OMI is regulated by the Isle of Man Government Insurance and Pensions
Regulatory Authority with whom OMI and the Company have already been in
contact in respect of the transaction. It is anticipated that such regulatory
approval of the acquisition, one of the contract conditions, will take
approximately four weeks to obtain.
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