FTSE 100 financial services group Old Mutual on Thursday said that terms had been agreed on the sale of Skandia Germany and Skandia Austria, which is being completed for a 220m euro cash sum.

The businesses, which at the end of 2013 had combined funds under management of 4.9bn euro, are part of Old Mutual Wealth and are being sold to a Cinven and Hannover Re acquisition vehicle.

Old Mutual said the deal was part of its plan to simplify its operations in Europe and focus on a select number of core growth markets.

The transaction is expected to complete by the end of the third quarter of 2014.

On a more detailed level, the businesses' market consistent embedded value (MCEV) at the 2013 year-end was around £262m, representing 5.4p of Old Mutual's adjusted MCEV per share. Following the sale, pro-forma adjusted group MCEV would be expected to decrease by 1.9p, it explained.

NR

Related share prices
Old Mutual (OML) share price