STOCKHOLM, Sweden, May 1, 2003 (PRIMEZONE) -- On December 20, 2002 it was announced that Prudential Financial, Inc. (US) ((NYSE:PRU) aquires American Skandia. The transaction has now been completed after all necessary regulatory approvals having been obtained. Prudential Financial, Inc. (US) acquisition of American Skandia was completed on May 1, 2003.
The Transaction
The transaction values American Skandia at USD 1,150 million as per September 30, 2002, including both external and intra-group borrowings. Most of the funds will be used to repay external loans. Skandia's external borrowings amounted to SEK 9.6 billion as per 31 December 2002. The transaction entailed a negative result impact of SEK 4.4 billion for Skandia, which was charged in its entirety against 2002 earnings.
Guarantee Commitments
The transaction agreement contains customary representations and warranties and similar guarantee commitments, which are limited as to time and amount. The maximum accumulated guarantee amount is limited to USD 1 billion. Certain warranties pertain to litigation. American Skandia is currently party to a class action suit. In Skandia's (Other OTC:SKNFF) (LSE:SDIAq) opinion, which is shared by external counsel, this suit is without merit.
Skandia For further information, please contact: Ulf Spang, Senior EVP tel +46706642905 Odd Eiken, EVP Communications and Strategy tel. +46 8 788 2880
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http://www.waymaker.net/bitonline/2003/05/01/20030501BIT00130/wkr0002.pdf