CGNU sells Commercial Union Life Holdings Canada Ltd and Norwich Union Holdings (Canada) Limited

Published: 22 Dec 2000

CGNU sells Commercial Union Life Holdings Canada Ltd and Norwich Union Holdings (Canada) Limited

CGNU plc ("CGNU"), the majority shareholder in Quilter Holdings Ltd ("Quilter") and CCF Holdings Ltd announce that the shareholders of Quilter have entered into an agreement to sell their shareholdings in Quilter to Morgan Stanley Dean Witter and Co ("MSDW"). The total consideration of approximately Ł172 million will be payable in cash and stock on completion. CGNU and CCF are to receive cash, and Quilter directors and staff are to receive a combination of cash and MSDW shares.

Following the exercise of management options and immediately prior to the change of ownership, the ordinary shares in Quilter on a fully diluted basis at the time of sale will be owned in the following proportion: CGNU 56.7%, CCF 20.2% and directors and staff 23.1%.

The transaction is subject to regulatory approval and is expected to complete in the first quarter of 2001.

Quilter is a private client investment management company with Ł4.9 billion assets under management at 30 June 2000.

Enquiries:

Analysts

Steve Riley, Investor Relations Director
Tel: +44 (0)20 7662 8115

Media

Hayley Stimpson, Director of External Affairs
Tel: +44 (0)20 7662 7544

Alex Child-Villiers, Financial Dynamics
Tel: +44 (0)20 7269 7107

Christine Chaussade (CCF)
Tel: +33 (0)1 40 70 35 33

Notes to editors:

  • This announcement is issued jointly by CGNU plc and CCF Holdings Ltd.
  • CGNU plc is the UK's largest insurance group and the world's sixth largest insurer based on gross worldwide premiums. The group was created from the merger of CGU and Norwich Union on 30 May 2000.
  • CGNU acquired Quilter in November 1988 and announced its intention to sell its stake on 15 September 2000.
  • CCF became a member of the HSBC Group in July 2000. With some 6000 offices in 81 countries and territories, and assets of US$580 billion at 30 June 2000, the HSBC Group is one of the world's largest banking and financial services organisations.
  • The vendors were advised by Credit Suisse First Boston Europe Ltd.

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