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May 22, 2002 at 08:00 PM
NU Online News Service, May 22, 12:05 p.m. – Nationwide Mutual Insurance Company, Columbus, Ohio, is helping Nationwide Financial Services Inc. generate a big asset gain by changing the structure it uses to control the Gartmore Group.
Nationwide Mutual says it will be trading 8 million shares of its Nationwide Financial Services Inc. stock for Nationwide Financial’s interest in Gartmore Global Investments Inc.
The deal will have a value of about $375 million, and Nationwide Financial will report a gain of $225 million, Nationwide Financial estimates.
Nationwide Financial says it will include the gain in the shareholder equity section of its financial statements.
The Gartmore Group and its sister company, Gartmore Global, are investment companies that manage a total of $77 billion in assets.
The same executive, Paul Hondros, manages both the Gartmore Group and Gartmore Global, but Nationwide Mutual is the direct owner of the Gartmore Group, which operates outside the United States. Nationwide Financial is the direct owner of Gartmore Global, which operates inside the United States.
Nationwide Mutual has had indirect control over Gartmore Global, because it owns 81% of Nationwide Financial’s outstanding common stock.
