Sale of Skandia Germany and Skandia Austria
Old Mutual plc
Ref 24/14
27 March 2014
Old mutual plc aNNOUNCES the sale of Skandia Germany and skandia austria
Old Mutual plc ("Old Mutual" or "the Group") today announces that terms have been agreed to sell Skandia Germany and Skandia Austria, part of Old Mutual Wealth, to a Cinven and Hannover Re acquisition vehicle (shortly to be renamed Heidelberger Leben Group).* The consideration for the transaction is €220 million in cash, plus interest to completion.
As at 31 December 2013, Skandia Germany and Skandia Austria had combined funds under management of €4.9 billion and post-tax adjusted operating profit for the year ended 31 December 2013 of €27 million.
The transaction is part of Old Mutual Wealth's commitment to simplify its operations in Europe and focus on a select number of core growth markets. The transaction is subject to regulatory approvals and other customary conditions and is expected to complete by the end of the third quarter of 2014. Proceeds will be retained by the Group for general corporate purposes.
As at 31 December 2013, the market consistent embedded value (MCEV) of the Skandia Germany and Skandia Austria businesses was approximately £262 million, representing 5.4p** of the Group's adjusted MCEV per share. As a consequence of the sale, pro-forma adjusted Group MCEV as at 31 December 2013 would be expected to decrease by 1.9p**. As at 31 December 2013, the net asset value (NAV) of the Skandia Germany and Skandia Austria businesses was approximately £259 million, representing 5.3p** of the Group's IFRS NAV per share. As a consequence of the sale, pro-forma adjusted Group IFRS NAV as at 31 December 2013 would be expected to decrease by 1.9p**.
* Cinven and Hannover Re have an unconditional agreement to acquire Heidelberger Leben, on completion the Cinven and Hannover Re acquisition vehicle will be renamed Heidelberger Leben Group.
** Based on the 4,897 million shares used in the 2013 Group Preliminary Results.
Enquiries
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+44 7834 524833
Notes to Editors
Old Mutual provides life assurance, asset management, banking and property & casualty insurance to more than 16 million customers in Africa, the Americas, Asia and Europe. Originating in South Africa in 1845, Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999.
In the year ended 31 December 2013, the Group reported adjusted operating profit before tax of £1.6 billion (on an IFRS basis) and had £294 billion of funds under management from core operations.
For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com
This information is provided by RNS
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