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Johannesburg – Old Mutual plc intends to sell its 26% stake in its life insurance joint venture in India.
The international financial services group made the announcement to divest from the joint venture with Kotak Mahindra Bank Limited, known as Kotak Mahindra Old Mutual Life Insurance Limited, on Friday.
The gross cash consideration of the transaction is £156m or R2.6bn. The net cash consideration comes to £141m or R2.4bn, the group’s SENS explained.
This transaction is subject to Indian regulatory approvals, the SENS read. It is expected to be complete in the second half of 2017.
The value of the stake as at December 31, 2016 was £45 m (R772m).
Old Mutual intends to use the proceeds from the transaction for “general corporate purposes”.
The group had agreed to embark on a demerger process of its wealth businesses last year.
Old Mutual Wealth announced the appointment of a new chief financial officer, Tim Tookey, on Friday.
The share was trading at R33.59 at 2.54pm on Friday.
