Disposal of Gerrard

RNS Number:3216R
Old Mutual PLC
27 October 2003

                                 Old Mutual plc

                              Disposal of Gerrard


Old Mutual plc ("Old Mutual") announces that it has reached agreement for the
sale of Gerrard Management Services Limited ("Gerrard") to Barclays Bank PLC.
The consideration is #210 million payable in cash at completion.


Gerrard is one of the UK's leading stockbrokers with #12.5 billion of funds
under management as at 30 September, 2003. In the last twelve months to 30 June,
2003 Gerrard generated revenues of #100 million and profits before exceptional
items and tax of #3 million. For the year ended 31 December, 2002 revenues and
profits before exceptional items and tax were #112 million and #3 million
respectively. Net assets as at 31 October, 2003, to be transferred on
completion, are expected to amount to approximately #28 million.


The disposal remains subject to receipt of certain regulatory consents.  Both
parties will be working towards completion by the end of the year.


Gerrard Private Bank, which operates offshore, is not part of the transaction,
and will retain rights to the brand for 12 months following completion of the
disposal.



Barclays has also agreed to explore opportunities for distributing Old Mutual's
UK investment products and using Old Mutual's low cost UK funds platform
Selestia.



Commenting on the sale, Hasan Askari, Chairman of Old Mutual Financial Services
(UK) plc said:



"Gerrard management has substantially completed its extensive restructuring
programme started in 2002 and successfully repositioned Gerrard for the future.
However for the next stage of Gerrard's development, we believe that Barclays
would be a more natural owner of the business enabling Gerrard to fully realise
its potential as well as deliver substantial benefits both to clients and
employees. The proceeds from the disposal will be deployed in the UK for general
corporate purposes."





Lazard acted as financial adviser to Old Mutual in this transaction.



27 October 2003



Enquiries:


Old Mutual plc
James Poole, Director, Corporate Affairs                                              [phone]


Lazard

Andrew Nason                                                                          [phone]
Stefano Giudici                                                                       [phone]
College Hill Associates

Tony Friend                                                                          [phone]









Notes to editors:



Gerrard Limited is one of the leading private client wealth managers in the UK,
with #12.5 billion funds under management, as at 30 September 2003. It employs
around 1,200 staff in its network of offices around the UK, and conducts close
to 1 million transactions annually.



Gerrard provides a full range of wealth management services, including:
investment management, stockbroking, charities, pensions and ethical investment,
SIPPs and ISAs. Further information can be found at: www.gerrard.com. Financial
planning is provided by Gerrard Financial Services Ltd.





Old Mutual plc is an international financial services group whose activities are
focussed on asset gathering and asset management in its three key territories:



  * South Africa - where it is the largest financial services group, providing
    life assurance, institutional and retail asset management, banking and
    general insurance operations.   Its banking subsidiary, Nedcor, is one of
    South Africa's largest banks and it provides general insurance operations
    (in joint venture with UK insurer, Sun Alliance), through its subsidiary,
    Mutual and General.



*        United States of America - where it is one of the top ten fixed annuity
businesses and operates through 23 asset management businesses offering a
diverse range of investment styles and products.



  * United Kingdom -  where it is currently listed at number 60 in the UK FTSE
    100 index with a market capitalisation of #3.8 billion.   In the UK the
    focus is on wealth management through its asset management activities.







                      This information is provided by RNS
            The company news service from the London Stock Exchange
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