/ 2 May 1999

Old Mutual in sale talks

OWN CORRESPONDENT, Johannesburg | Friday 4.00pm.

OLD Mutual, which will list on the London stock exchange this year, said on Friday it is in talks to sell British-based Old Mutual Life Assurance and another unit based in the Isle of Man.

The businesses are on the block because Old Mutual wants to move further into financial services and away from traditional life insurance.

Annette Wrigley, spokeswoman for Old Mutual International, said that the London-based Century Group made an initial bid to buy the businesses and is now studying their books. It will decide whether to make a formal offer by the end of next month.

Speaking from Hampshire in the south of England, she declined to say how much money is at stake, but said the unit had life assurance assets of 1,1-billion pounds at the end of last year.

She said the Isle of Man business, which structures special offshore life products, has assets of 450-million.

The operations are part of the international arm of South Africa’s largest life assurer, which last month got the green light to ditch its mutual status and list in London and Johannesburg by mid-year.