LONDON, July 16, 2001 (PRIMEZONE) -- Old Mutual plc (OML), (LSE:OML), has entered into an agreement with CGU International Insurance plc ("CGU"), a subsidiary of CGNU plc, to acquire all its existing business in Pakistan. The acquisition is conditional upon the receipt of regulatory approvals and completion.
The transaction will be effected by the transfer of CGU's 51% stake in Commercial Union Life Assurance Company (Pakistan) Limited (CULAP), a company listed on the Karachi Stock Exchange, to OML. Separately, another public company will be incorporated in Pakistan, with OML as a principal shareholder, to take over the assets and liabilities of CGU's general branch operations. OML expects to maintain current management structures.
Mr. Jim Sutcliffe, Chief Executive, commenting on the transaction said, "Our acquisition in Pakistan is part of a continuing effort by Old Mutual to build a substantial business in emerging markets world-wide."