Canadian insurance and financial services firm Sun Life Financial has reached an agreement to sell its 31.72% investment in Chilean pension funds administrator, Administradora de Fondos de Pensiones Cuprum SA, for approximately C$120 million in cash.
Sun Life’s stake in Cuprum was sold to Empresas Penta SA, a pensions and financial services firm based in Chile. As a result of the transaction Sun Life expects to undergo a charge to its earnings of approximately C$45 million in the third quarter of 2005, arising from the depreciation of the Chilean peso against the Canadian dollar since the interest was acquired in 1998.
Commenting on the transaction, Sun Life said that its ownership position in Cuprum was not a core strategic asset and that the resulting sale would allow capital to be redeployed more effectively within the group.
This sale reflects our continued focus on building a sustainable presence in markets in which we choose to compete, and exiting those markets where we do not have a meaningful presence, said CEO Donald Stewart.
Chartered in 1865, Sun Life Financial and its partners have operations in markets across the globe, including Canada, the US, the UK, Hong Kong, Japan and China. The Sun Life Financial group of companies currently has total assets under management of $377 billion.