Old Mutual plc - Dispoal of Gerrard
Old Mutual plc
ISIN CODE: GB0007389926
JSE SHARE CODE: OML
NSX SHARE CODE: OLM
ISSUER CODE: OLOML
Disposal of Gerrard
Old Mutual plc ("Old Mutual") announces that it has reached agreement for the
sale of Gerrard Management Services Limited ("Gerrard") to Barclays Bank PLC.
The consideration is GBP210 million payable in cash at completion.
Gerrard is one of the UK"s leading stockbrokers with GBP12.5 billion of funds
under management as at 30 September, 2003. In the last twelve months to 30 June,
2003 Gerrard generated revenues of GBP100 million and profits before exceptional
items and tax of GBP3 million. For the year ended 31 December, 2002 revenues and
profits before exceptional items and tax were GBP112 million and GBP3 million
respectively. Net assets as at 31 October, 2003, to be transferred on
completion, are expected to amount to approximately GBP28 million.
The disposal remains subject to receipt of certain regulatory consents. Both
parties will be working towards completion by the end of the year.
Gerrard Private Bank, which operates offshore, is not part of the transaction,
and will retain rights to the brand for 12 months following completion of the
disposal.
Barclays has also agreed to explore opportunities for distributing Old Mutual"s
UK investment products and using Old Mutual"s low cost UK funds platform
Selestia.
Commenting on the sale, Hasan Askari, Chairman of Old Mutual Financial Services
(UK) plc said:
"Gerrard management has substantially completed its extensive restructuring
programme started in 2002 and successfully repositioned Gerrard for the future.
However for the next stage of Gerrard"s development, we believe that Barclays
would be a more natural owner of the business enabling Gerrard to fully realise
its potential as well as deliver substantial benefits both to clients and
employees. The proceeds from the disposal will be deployed in the UK for general
corporate purposes."
Lazard acted as financial adviser to Old Mutual in this transaction.
27 October 2003
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