LONDON, Oct. 21, 2002 (PRIMEZONE) -- Old Mutual plc ("Old Mutual") (Other OTC:ODMTF) (LSE:OML) announces that it has reached agreement for the sale of GNI Holdings Limited ("GNI") to Man Group plc. The base consideration is 100 million pounds 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 pounds to Old Mutual. Net assets to be transferred on completion are expected to amount to approximately 65 million pounds.
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 U.K. 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 U.K. 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 U.K. building these core financial services businesses which will enable us to optimise our U.K. portfolio to deliver value for clients and shareholders."
Lehman Brothers acted as financial adviser to Old Mutual in this transaction.
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 pounds as at October 18, 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 pounds 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.