Agreement to acquire Commercial Union's operations in Pakistan
Old Mutual plc, ("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. The
combined net assets being acquired are approximately 3million as at 31
December 2000.
Mr. Jim Sutcliffe, Chief Executive designate, 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."
16 July 2001
ENQUIRIES: Old Mutual plc
James Poole, Director Investor Relations Tel: +44 20 7569 0100
College Hill London
Matthew Gregorowski Tel: +44 20 7457 2020
College Hill Johannesburg
Linda Baker Tel: +27 11 447 3030
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