30 July 2004 – Read all today’s legal news, law firm news, legal research articles at LAWFUELAllen & Overy is advising Royal & SunAlliance on the sale of its UK life operations to Resolution Life Group, for a consideration of £850 million, comprising £750 million of cash together with £100 million of preference shares. In addition, the contingent loans currently being provided by Royal & SunAlliance, of which £146m was utilised at 31 December, 2003, will be repaid at completion. As part of the transaction, Royal & SunAlliance will extract net assets of £131 million from the UK life operations prior to the sale.
The disposal completes the Royal & SunAlliance’s strategy of exiting from the life business and focusing on general insurance. The transaction is subject to shareholder and FSA approval and it is anticipated to complete by the end of October.
Michael McDonald, corporate finance partner in A&O’s Financial Institutions Group, is leading the team, assisted by senior corporate associate George Knighton and corporate associates James Gilbert, Caroline Mylward, Stephen Mathews and Gavin Weir. Also assisting are Stella Cramer (IT/IP), Kate Logan (IT/IP), Susie Daykin (pensions), Julia Gorham (employment), Joanna Marshall (real estate), Adam Blakemore (tax) and Gareth Banfield (tax). Philip Jarvis (Head of the Insurance Group) and Roger Loo are providing insurance regulatory advice. Also involved are partners Mark Wippell (corporate), Carol Hopper (real estate), David Lewis (tax), Derek Sloan (pensions), Mark Mansell (employment), Sylvie Watts (incentives), Simon Roberts (banking) and Colin Pearson (IT/IP).
Michael McDonald comments: “We are pleased to have assisted Royal & SunAlliance on this important transaction which is clear evidence of its commitment to deliver on its strategy. This is a transforming transaction in the UK life insurance sector as it represents the first major sale of a closed life insurance group to a newly formed consolidator in the closed book sector. Allen & Overy advises on many of the most significant and complex transactions involving financial institutions across the world. Its market knowledge and leading regulatory and transactional skills ensure the optimum solution for these often complex transactions.”
For further information, please contact Jo Shepherd ([email protected]) in London on +44 (0) 20 7330 2915 or on +44 (0)7771 896 290.