Old Mutual completes sale of Nordic unit

Shareholders of savings, investments and insurance giant Old Mutual are in line for their eagerly-awaited special dividend after the firm finally completed the sale of its Nordic business.

The Nordic division - the long-term savings and banking operations in Sweden, Denmark and Norway, to Skandia Liv - is being sold to Skandia Liv for a net cash consideration of SEK22.4bn (£2.1bn).

As previously announced, the group will pay a special dividend of £1bn, or 18p per share, using the proceeds from the sale. The payment will be made on June 7th. Last month, the group also proposed a seven-for-eight share consolidation.

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"I am delighted that we have completed this transaction, which creates value for both our shareholders and for Skandia Liv's policyholders," said Old Mutual's Chief Executive Julian Roberts.

These businesses aren't the only units that Old Mutual has offloaded as of late. During 2011, the group concluded the sale of US Life, closed Switzerland to new business and announced the sale of its Finnish business. The firm also decided to consolidate its other European businesses under one management team.

BC