Disposal
April 15 2003 - 6:25AM
UK Regulatory
RNS Number:0483K
Investec PLC
15 April 2003
Investec plc
Registered in England and Wales Company Number: 3633621
Reinsurance and subsequent transfer of the businesses of Investec Employee
Benefits Limited, a wholly owned subsidiary of Investec Limited ("Investec" or
the "Company"), to Liberty Group Limited ("the Proposed Transaction")
1. Introduction
Investec Bank Limited is authorised to announce that Investec Employee
Benefits Limited ("IEB") (formerly Fedsure Life Assurance Limited) and
Liberty Group Limited ("Liberty") have agreed, subject to the fulfilment
of the suspensive conditions referred to below, that:
*with effect from 31 March 2003, Liberty will reinsure a portion of
IEB's policyholder liabilities ("the Reinsured Businesses");
*Liberty will assume the administration of the above policies with
effect from a target date of 1 August 2003; and
*IEB and Liberty will apply for a Court Order in terms of section 37
of the Long Term Insurance Act, to formally transfer the policyholder
liabilities to Liberty ("the Transfer Businesses") ("the S37 Transfer").
IEB has entered into separate Agreements with Liberty, to effect the
assumption of risk, administration and transfer of the Reinsured
Businesses and the Transfer Businesses.
2. Rationale
Further to the previously announced individual life and annuity
reinsurance transactions with Capital Alliance Life Limited the Proposed
Transaction has been concluded to:
* place the Reinsured Businesses and Transfer Businesses with Liberty
who are one of the leading providers of fund benefit and administration
services;
* reduce Investec's exposure to administration intensive businesses,
which require significant infrastructure and ongoing investment; and
* transfer liabilities of approximately R3 700 million to Liberty.
Post the implementation of the Proposed Transaction IEB will mainly
comprise:
* Risk Only Business, with the intention to grow market share and to
become a significant player; and
* Investment Only Business, which is effectively an asset management
function. IEB will continue to manufacture appropriate investment and
risk products to distribute to its client base.
3. The Proposed Transaction
3.1 The reinsurance agreement
The Reinsured Businesses comprise the fully administered risk business,
the existing disability claimants business and portions of the fully
administered smooth bonus business.
3.2 The administration agreement
IEB has agreed to transfer the administration of the Reinsured
Businesses and the Transfer Businesses to Liberty. The target date for
this transfer is 1 August 2003. As part of this agreement, all of IEB's
staff currently responsible for the administration of these policies
will be transferred to Liberty.
3.3 The transfer agreement
IEB and Liberty have agreed to seek a formal transfer, in terms of section
37 of the Long Term Insurance Act, of the Transfer Businesses to Liberty.
4. Suspensive condition
The Proposed Transaction is subject to the approval of the competition
authorities.
15 April 2003
Merchant Bank and Adviser Attorneys
Investec Bank Limited Jowell Glyn & Marais Inc
(Registration number 1969/004763/06) Registration number 1990/000849/21)
Sponsor
Investec Securities Limited
Member of the JSE
Registration No. 1972/008905/06
This information is provided by RNS
The company news service from the London Stock Exchange
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