Sale of GNI
Old Mutual PLC
21 October 2002
OLD MUTUAL PLC
Old Mutual plc sale of GNI
Old Mutual plc ('Old Mutual') announces that it has reached agreement for the
sale of GNI Holdings Limited ('GNI') to Man Group plc. The base consideration is
£100 million and is payable in cash at completion.
GNI is a leading provider of derivative brokerage and collateral management
services across global fixed interest, equities, commodities and foreign
exchange markets. It was acquired by Old Mutual as part of its acquisition of
Gerrard Group plc in January 2000. The transaction is consistent with Old
Mutual's stated purpose to focus on asset management and asset gathering
worldwide.
In the first half of 2002, GNI contributed operating profit of £5 million to Old
Mutual. Net assets to be transferred on completion are expected to amount to
approximately £65 million.
Old Mutual is retaining GNI Fund Management, the specialist hedge fund business,
as part of its asset gathering / management strategy.
The transaction remains subject to the satisfaction of certain conditions,
including receipt of regulatory consents. Completion is expected to take place
before the end of 2002.
Commenting on the sale, Edmond Warner, Chief Executive of Old Mutual Financial
Services UK said:
'I am particularly pleased to announce this transaction. GNI has been a
successful business within Old Mutual since its acquisition in 2000, but our
strong focus in the UK is on the wealth and investment management market,
supporting Old Mutual's core strategies in asset gathering and asset management.
We believe that there are exciting opportunities for us in the UK building these
core financial services businesses which will enable us to optimise our UK
portfolio to deliver value for clients and shareholders.'
Lehman Brothers acted as financial adviser to Old Mutual in this transaction.
21 October 2002
ENQUIRIES:
Old Mutual plc
James Poole Tel: +44 20 7569 0100
Nad Pillay Tel: +27 21 509 9111
Old Mutual Financial Services UK
Edmond Warner, Chief Executive Tel: +44 20 7002 4000
College Hill
Tony Friend Tel: +44 207 457 2020
Gareth David
Robyn Hunt Tel: +27 11 447 3030
Notes to editors:
Old Mutual plc is an international financial services company based in London,
with substantial operations in life assurance, asset management, banking and
general insurance. Old Mutual is listed on the London Stock Exchange with a
market capitalisation of £3,101 million as at 18 October 2002. It is also listed
on the Johannesburg, Namibian, Malawi and Zimbabwe stock exchanges. The company
operates the largest life assurance business in Southern Africa, through which
it provides life, disability and health insurance, retirement savings and
investment products to individuals and groups. The company also has worldwide
interests in life assurance and asset management. The enlarged group had £133
billion of assets under management as at 30.06.02. Old Mutual owns 53.2% of
Nedcor, South Africa's highest rated bank, and 51% of the South African general
insurance company, Mutual & Federal.
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund