3i Group PLC IIIP

DJ 3i To Reduce Headcount by 160; Suspend New Spain, Asia P.E. Investment

LONDON--3i Group PLC (III.LN), an investment company, said Friday that it will reduce its headcount by 160, a third of its staff, while also suspending new private equity investment in Spain and Asia and aiming to generating more third-party income by raising more further third-party funds.

-Closure of offices in Barcelona, Birmingham, Copenhagen, Hong Kong, Milan and Shanghai, reducing total number of offices from 19 to 13, and a significant reduction of staff in a further 6 offices

-To new private equity investment primarily in core Northern European markets and Brazil.

-Will suspend new private equity investment in Spain and Asia.

-Immediate implementation of significant cost reduction program

-Targeted annualized run-rate operating cost savings of GBP40 million to be achieved by March 31 2013, increasing to GBP45 million by March 31 2014.

-Aims to reduce gross debt and funding costs; gross debt already reduced below previously stated target to be less than GBP1.3 billion by September 2012.

-Shares closed Thursday at 191 pence valuing the company at GBP 1.9 billion.

-Write to Ed Ballard at ed.ballard@dowjones.com

(END) Dow Jones Newswires

June 29, 2012 02:22 ET (06:22 GMT)

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