Old Mutual has sold its Skandia business in Germany and Austria to focus on faster growing markets.
Skandia Germany and Skandia Austria, which were part of Old Mutual Wealth, have been acquired by a specialist Cinven and Hannover Re acquisition vehicle for €220 million (£183 million) in cash.
In a statement to the stock market, the firm explained: ‘The transaction is part of Old Mutual Wealth’s commitment to simplify its operations in Europe and focus on a select number of core growth markets.’
As at 31 December 2013, Skandia Germany and Skandia Austria had combined funds under management of €4.9 billion (£4.1 billion) and a post-tax profit for 2013 of €27 million (£22.4 million).
The transaction is subject to regulatory approvals but is expected to complete by the end of the third quarter of 2014. Old Mutual said it would retain the proceeds for ‘general corporate purposes’.