Old Mutual is selling Skandia Germany and Skandia Austria to a Cinven and Hannover Re acquisition vehicle for €220 million($302.7 million).

London and Johannesburg-listed bank and asset manager Old Mutual is selling Skandia Germany and Skandia Austria to a Cinven and Hannover Re acquisition vehicle for €220 million ($302.7 million).

Old Mutual said in a statement the deal was part of it plans simplify its operations in Europe and focus on a select number of core growth markets.

As at 31 December 2013, Skandia Germany and Skandia Austria had combined funds under management of €4.9 billion and post-tax adjusted operating profit for the year ended 31 December 2013 of €27 million.

The transaction is subject to regulatory approvals expected to complete by the end of the third quarter of 2014. Old Mutual said that proceeds of the deal will be used for general corporate purposes.

Cinven and Hannover have an unconditional agreement to acquire Heidelberger Leben, which on the completion of the deal will be renamed Heidelberger Leben Group.

In other news, earlier this month Old Mutual Wealth, comprising Skandia and Old Mutual Global Investors,  confirmed that vice chairman Peter Mann will retire to pursue new challenges outside of the company. Mann will stay with the business until the mid-year to ensure a smooth hand over of his responsibilities.