Resolution can buy outside life project
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Resolution has agreed a deal that will allow senior management, including Resolution founder Clive Cowdery, to pursue other financial services acquisitions outside of its UK life project.
The Resolution brand has been used by Cowdery to acquire Friends Provident, Axa’s UK life and pension business and Bupa Health Assurance.
Friends Provident and the Axa business came under the Friends Life brand in March. Bupa’s individual protection business will come under the Friends Life brand later this year. In June, Resolution said it would not carry out additional projects until after the completion of the UK life project following shareholders’ concerns that returns from the project would be used to fund other acquisitions.
In its first-half results this week, Resolution revealed plans to allow Resolution Operations, a separate company in which the management team sit, to pursue other financial services acquisitions.
Resolution says: “In light of the company confirming it would not undertake other projects until after completion of the UK life project, the board has agreed principles with Resolution Operations which will allow Resolution Operations to sponsor restructuring projects and advise other entities which do not conflict with the UK life project.”
A circular will be sent out to shareholders in October setting out the proposals in detail and arranging a general meeting for a vote.
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