Business
Old Mutual to sell Old Mutual Wealth Italy─── 12:24 Wed, 10 Aug 2016
Cape Town - Old Mutual announced on Wednesday that it has agreed to sell Old Mutual Wealth Italy (OMWI) to Ergo Italia, which is owned by Cinven.
The sale price is €278m in cash plus interest up to the date of completion of the deal, which is expected to be in about six months' time. The transaction is also subject to regulatory approvals and customary conditions.
According to Old Mutual OMWI had €7bn of funds under management at December 31 2015 and contributed €22m of post-tax earnings for the year ending December 31 2015.
In a statement to shareholders Old Mutual said the sale is the final part of the divestment of Old Mutual Wealth's continental European businesses, which will allow it to focus on its core UK and cross border markets.
The proceeds of the deal will be retained by Old Mutual for general corporate purposes.
Old Mutual shares were trading 0.36% higher at R39.13 in early trade on the JSE.
- News24.com
