LONDON, April 19, 2001 (PRIMEZONE) - Old Mutual plc (LSE:OML).
Major South African banking group Nedcor has entered into an agreement to acquire Fleming Offshore Banking, from owners J.P. Morgan Chase & Co., subject to regulatory consent. Fleming Offshore Banking operates from the Isle of Man and Jersey.
The acquisition sees Nedcor join forces with its parent company Old Mutual plc, which will transfer its Guernsey-based fiduciary business into the new company. The enlarged private bank will offer clients a full range of offshore banking, investment and fiduciary services for the benefit of local and international high net worth clients.
"From a Nedcor perspective, this acquisition has huge significance, not only because of what it means for the clients of Nedbank Syfrets Private Banking, but also because it marks a substantial enhancement of our international offering in partnership with Old Mutual," says Nedcor chief executive Richard Laubscher.
Mike Levett, Chairman and Chief Executive Old Mutual plc said, "Our leading private client and offshore investment businesses have planned for some time now to add a private banking service to complement and complete their services for customers. I am delighted that we have been able, in partnership with Nedcor to acquire Fleming Offshore Banking, to enable us to enhance our existing services."
The new entity will be renamed Gerrard Private Bank, an appropriate extension of the Gerrard brand. Gerrard, part of the Old Mutual plc group, is a leading private client wealth management firm in the UK. Gerrard Private Bank will offer a discreet and comprehensive private banking service for wealthy clients offshore.
In terms of the acquisition, Nedcor will hold a 74 percent equity stake in the renamed Gerrard Private Bank, with Old Mutual holding the remaining 26 percent.
Nedcor's purchase will be financed by funds held outside South Africa, while Old Mutual will transfer the operations of Fairbairn Trust Company into Gerrard Private Bank in exchange for its stake. Old Mutual plc will have the option to increase its stake to 51 percent within the next four years.
At the end of the first quarter 2001 Fleming Offshore Banking had net assets of approximately 24 million. The deal is subject to regulatory approval in Guernsey, Jersey, the Isle of Man and South Africa.