Nationwide completes conversion, merger of Provident Mutual. (Briefing).Nationwide Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Inc., Columbus, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. , has completed its sponsored demutualization Demutualization The process of changing corporate structure from a mutual fund company to some other form, such as a limited liability or corporation. Notes: This means mutual/life insurance companies convert from policyholder companies to stock companies. of Provident Mutual Life Insurance Co. In the largest sponsored demutualization ever, Provident Mutual is now a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Nationwide Financial and its name has become Nationwide Provident. As part of the transaction, which has an aggregate value of $1.12 billion, former Provident members will receive shares of Nationwide Financial common stock, cash and policy credits. Nationwide Financial agreed to sponsor Provident's demutualization and acquire the company because it saw an opportunity to expand its own distribution capabilities with Provident's career life insurance agent force, said Bryan Haviland, a spokesman for Nationwide. "When you look at Nationwide's distribution channels, we distribute through banks, brokers and independent financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against firms," he said. "This was a piece of the puzzle we didn't have, but wanted." The addition of Nationwide Provident also gives Nationwide Financial a stronger position in the variable life insurance segment, which is a key growth area for the company, Haviland said. "This will be of significant value for Nationwide customers, for former Provident agents and for Nationwide shareholders," he said. Nationwide Provident will remain headquartered in Berwyn, Pa. The company also maintains a facility in Newark, Del. and has 50 field offices throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Nationwide issued approximately 32 million Class A shares in connection with the transaction, increasing its number of outstanding shares to 151.6 million. The transaction reduces Nationwide Mutual Insurance Co.'s ownership interest in Nationwide Financial to 63% from 80%. |
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