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Old Mutual sells stake in Indian life JV

28 April 2017 07:29

Old Mutual has agreed to sell its 26% stake in Kotak Mahindra Old Mutual Life Insurance Limited to its joint venture partner Kotak Mahindra Bank Limited. Gross cash consideration for the deal, before tax, was INR 12.9bn, or about £156m. Net consideration was expected to be about INR 11.7bn.

The transaction was subject to Indian regulatory approvals and was expected to complete in the second half of 2017.

As at 31 December 2016, the carrying value in Old Mutual's consolidated financial statements of its stake in the joint venture was £45m.

"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% stake in the joint venture."

Old Mutual said it would use the proceeds from the deal for general corporate purposes.

Separately, Old Mutual Wealth said its Funds under Management at Mar. 31, 2017, totalled £122.3bn, up from £115.3bn at Dec. 31, 2016.

"While we are hopeful that this momentum will continue throughout 2017, we expect that markets will remain volatile and challenging in the medium-term, particularly until both the outcome of the upcoming general election and greater details on the terms of the UK's exit from the EU are known," said Paul Feeney, CEO of Old Mutual Wealth.

Old Mutual Wealth also appointed Tim Tookey as CFO, reporting to Feeney.

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