Merger of CGU and Norwich Union
CGU PLC
22 March 2000
CGU plc
Merger of CGU and Norwich Union
CGU plc announces that companies within the CGU Group intend to transfer their
interest in certain Norwich Union shares, which are held as portfolio
investments within the long-term and general insurance reserves of various CGU
group companies. If CGU were not to arrange the transfer of these shares
then, under the terms of the scheme of arrangement to implement the merger of
CGU and Norwich Union, these shares would remain as unquoted Norwich Union
shares. For technical reasons, it would be inappropriate for such shares to be
retained by the new CGNU Group as portfolio investments within its long-term
and general insurance reserves.
The transfers will comprise the sale of 379,920 Norwich Union shares through
the market and the transfer of 23,742,106 shares to a financial institution in
London in connection with the issue by that financial institution of a
security linked to the performance of Norwich Union shares, which would
replicate the economic effect of holding CGNU shares once the merger becomes
effective. Together, these shareholdings comprise approximately 1.25 per
cent. of the total issued share capital of Norwich Union. Upon their disposal
in this way, such Norwich Union shares will become subject to the Norwich
Union scheme of arrangement.
These transfers are expected to commence no earlier than 24 hours after the
time of this announcement and to be completed no later than 29 March 2000.
Enquiries:
CGU plc
Peter Foster (020) 7283 2000
Goldman Sachs International
John Reizenstein (020) 7774 1000
Goldman Sachs International, which is regulated in the United Kingdom by the
Securities and Futures Authority Limited, is acting exclusively for CGU and
no-one else in connection with the merger of CGU and Norwich Union and will
not be responsible to anyone other than CGU for providing protections afforded
to customers of Goldman Sachs International, or for giving advice in relation
to the merger.
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