Johannesburg - Old Mutual is selling its 26 percent stake
in India-based in Kotak Mahindra.
It says it is selling the stake to its joint venture
partner Kotak Mahindra Bank for £156 million.
Old Mutual, which is in the middle of a split, says the
net proceeds of £141 million will be for general corporate purposes.
When the split is complete, the group will be separated
into Old Mutual Wealth (UK); Old Mutual Emerging Markets (South Africa); Old
Mutual Asset Management (US) and Nedbank.
The split was set in motion when Old Mutual announced in
August the sale of Old Mutual Wealth Italy by entering into a short period of
negotiations with Cinven, the owner of Ergo Italia.
The deal, subject to Indian regulatory approvals, is
expected to complete in the second half of 2017.
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As at December 2016, the carrying value in Old Mutual’s
consolidated financial statements of its stake in the joint venture was £45
million.
Old Mutual adds the conclusion of the transaction will
also terminate the joint venture arrangement, including the respective put and
call option arrangements between the parties relating to a 23 percent stake in
the joint venture.
Rothschild acted as financial adviser to Old Mutual in
connection with the transaction.
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