9th May 2007 09:30
Provident Financial PLC09 May 2007 PROVIDENT FINANCIAL plc SALE OF PROVIDENT INSURANCE TO GMAC Provident Financial plc ("Provident") today announces that it has agreed thesale of Provident Insurance, its non-core motor insurance business, to Car CarePlan (Holdings) Limited (a subsidiary of GMAC Insurance Holdings Inc.) for aconsideration of approximately £170m, payable in cash. This follows theannouncement on 17 January 2007 that Provident was entering discussions for thepossible sale of Provident Insurance. The transaction is expected to complete inJune 2007, once the necessary regulatory approvals for change of control havebeen obtained. In the financial year ended 31 December 2006, Provident Insurance had revenuesof £160.9 million and made a pre-tax profit of £41.0 million. At 31 December2006, gross assets amounted to £436.7 million and net assets were £81.3 million. The disposal will give rise to a pre-tax exceptional gain of approximately £70million. As previously announced, the disposal of Provident Insurance is an importantelement of the Group's capital re-structuring ahead of the demerger of itsInternational business. Full details of the intended capital structures of theUK and International businesses following the demerger will be included in theCircular and Prospectus to be issued in connection with the forthcomingdemerger. John van Kuffeler, Chairman, commented: "Completion of this disposal will allow the demerger of the Internationalbusiness to proceed rapidly. "The price achieved for Provident Insurance reflects the quality of thisbusiness and we are delighted to see it pass into the ownership of GMAC which isa strong strategic buyer." 9 May 2007 Enquires: Kevin Byram Brunswick 0207 404 5959 Nigel Prideaux Brunswick 0207 404 5959 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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