Royal & SunAlliance has completed the sale of its 21.5% shareholding in Rothschilds Continuation Holdings for GBP109.5 million. Rothschilds Continuation Holdings is the parent company that manages subsidiary banking and investment businesses trading under the NM Rothschild banner.
The UK-based insurance group stands to make a profit before tax on the deal of some GBP60 million. R&SA announced earlier in the year that it would be ending its historic association with Rothschilds.
In its announcement in June 2005, R&SA said that Jardine, the Hong Kong-headquartered subsidiary of Jardine Matheson, will acquire 20% and the Rothschilds Continuation Holdings Employee Share Trust will acquire the remaining 1.5%. This latest statement reports that the transaction has been completed on the originally agreed terms.
R&SA said that its Rothschilds holding was not core to its business going forward. The insurer added that the net proceeds of the disposal were likely to be used to support other group activities.