Nvesta buys Eurolife voting shares to boost resale value

2 February 2006 0:00 am

Nvesta is to distance itself further from parent company Eurolife by buying all its voting shares in a move aimed at raising its resale value.

Nvesta's management and a consortium of third parties will pay 300,000 in a deal that will leave management with 51 per cent of voting rights and control over the business.

Proposals by Eurolife to sell Nvesta, which is valued at 3m, in two to three years were included in its restructuring proposals following the default of its five-year secured income and growth bond last January.

Investors were offered compensation but Eurolife no lon-ger distributes through IFAs after selling its 50m UK life insurance business to Reliance Mutual last March.

Eurolife managing director David Wootton says Nvesta has effectively been independent of Eurolife since 2001. The latest move follows the transfer of Eurolife's admin and IT staff to Nvesta last November.

Nvesta says it plans to expand its European distribution operation and offer more open and closed-ended products.

Business development manager Anthony Green says: "This is not a precursor to Eurolife selling the business in a couple of months although it would be nice if a big bank came along offering us lots of money. It is aimed at developing business and cutting ties with Eurolife in the eyes of advisers."

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