Fees bonanza after Old Mutual sell-off
Friday 16 December 2011
The moribund City deal market got an injection of life yesterday when Old Mutual said it would offload its Nordic business for £2.1bn.
Old Mutual, a sprawling insurance conglomerate that has been trying to slim down for several years, is selling Skandia Insurance to namesake Swedish insurer Skandia Liv.
That is a welcome fee bonanza for the banking advisers Evercore Partners, Morgan Stanley, Bank of America Merrill Lynch and Deutsche Bank, who might typically get 2 per cent of the deal's value.
The move is chief executive Julian Roberts' latest move to rationalise the company. Since listing in London in 1999, the South African-based firm quickly expanded into 30 countries.
Mr Roberts said: "The transaction will also enable us to reduce complexity within the group consistent with our stated strategy, and to focus more sharply on those parts of our long-term savings business where the greatest opportunities are available."
He said the disposal had "absolutely no implications" for the company's UK Skandia subsidiary, which remains "a key business".
In a note, Goldman Sachs said: "This sale price is significantly in excess of our sum of the parts component for these businesses of £1.4bn."
- 1 Why I'm on the brink of burning my Israeli passport
- 3 Blackest is the new black: Scientists have developed a material so dark that you can't see it...
- 4 Iraq crisis: How Saudi Arabia helped Isis take over the north of the country
- 5 Barack Obama fist bumps Texas restaurant employee in support of gay rights
Scottish independence: Scots of Corby take matters into their own hands in mock referendum - and deliver overwhelming verdict
Protesters fight to save Arturo, the polar bear sweltering in baking hot zoo
Fry ‘criticises Operation Yewtree in dinner party rant’ calling for tougher laws to deter false sex abuse allegations
Supermoon 2014 in pictures: Moon appeared bigger and brighter at the weekend
Saharan remains may be evidence of first race war, 13,000 years ago
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
Emergency data law: David Cameron plots to bring back snoopers’ charter
NUT strike: David Cameron announces crackdown on strike action ahead of mass industrial action
iJobs Money & Business
£30000 - £45000 Per Annum: Clearwater People Solutions Ltd: Our client based i...
£55000 - £60000 per annum + bonus + bens: Deerfoot IT Resources Limited: Our c...
£40000 - £45000 per annum + bonus + bens: Deerfoot IT Resources Limited: Messa...
£35000 per annum: Harrington Starr: A world leading brokerage is looking for a...