Old Mutual shares jump on plans to sell Nordic business
Insurer Old Mutual is to sell its Nordic business to Skandia Liv for 22.5bn Swedish crowns ($3.2bn; £2bn).
The division being sold includes savings and banking operations in Denmark, Norway and Sweden operating under the Skandia brand.
Money from the sale will be used to cut debt, with any surplus proceeds returned to shareholders. News of the sale pushed Old Mutual's shares up 11%.
The firm recently began a disposal programme of "non core" businesses.
It has sold its American life insurance business to hedge fund Harbinger, and is looking to sell its stake in South Africa's Nedbank.
"The sale of Nordic to Skandia Liv represents a truly unique opportunity to create value for both Skandia Liv's policyholders and Old Mutual's shareholders through unlocking significant synergies from the combination of Skandia Liv and Nordic," chief executive Julian Roberts said on Thursday.
Old Mutual expects to complete the sale towards the end of the first quarter of 2012.