StockMarketWire.com - Wealth management business Quilter has confirmed that the sale of Quilter Life Assurance (QLA) to ReAssure Group completed on 31 December 2019.
The disposal of QLA, which was announced on 5 August 2019, has been completed for a total cash consideration of c.£445m, representing the agreed cash consideration of £425m, together with accrued interest payable under the sale agreement up to the completion date of c.£20m.
Quilter said the sale of the QLA business was structured under a lock-box mechanism, with effective economic interest passing to ReAssure on 1 January 2019. Interest income on the agreed sale proceeds was due to the group from that date until completion.
The contribution from QLA earnings to the group's 2019 dividend of c.£20m represents a partial advance distribution of sale proceeds, according to a statement from Quilter.
The board of Quilter considers the net surplus proceeds from the sale to be £375m and that this excess capital is available for return to shareholders in full.
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