| Wed 15 Dec 2010, 14:23 | | OML - Old Mutual Plc - Update on timetable for sale of US life |
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OML
OLOML
OML - Old Mutual Plc - Update on timetable for sale of US life
OLD MUTUAL PLC
ISIN CODE: GB0007389926
JSE SHARE CODE: OML
NSX SHARE CODE: OLM
ISSUER CODE: OLOML
Update on timetable for sale of US Life
Further to the announcements made at the 2010 Q3 IMS and the 2010 Interim
Results, Old Mutual plc ("Old Mutual") today announces an update to the
timetable for the contracted sale of Old Mutual`s US Life operations to
affiliates of Harbinger Capital Partners LLC ("Harbinger").
Old Mutual and Harbinger are continuing discussions with state regulators to
obtain the approvals that are required prior to the consummation of the
transaction. Old Mutual is assisting Harbinger in exploring possible
modifications to the transaction structure from that envisaged in the sale
agreement announced on 6 August 2010. If agreed, it would, inter alia, remove
or reduce certain of the residual refinancing obligations of Old Mutual on
completion. Any agreed changes to the transaction structure will be
communicated to the regulatory authorities and will be subject to their
approval.
We expect these discussions will take some weeks to conclude and, as a result,
closing is now expected during the first quarter of 2011.
OM Financial Life Insurance Company (OMFLIC) continues to perform satisfactorily
and is expected to pay a dividend of $59 million before the year end. We
estimate that after this dividend is paid its RBC ratio will still be in excess
of 350%. $522 million of the total $551 million of the specified securities in
the stock purchase agreement have been sold at terms better than those expected
on signing of the sale agreement. The general account portfolio had a net
unrealised gain at 30 November 2010 of $501 million.
Enquiries
External Communications
Patrick Bowes UK +44 (0)20 7002 7440
Investor Relations
Deward Serfontein SA +27 (0)82 810 5672
Aleida White UK +44 (0)20 7002 7287
Media
William Baldwin-Charles UK +44 (0)20 7002 7133
Notes to Editors
Old Mutual
Old Mutual plc is an international long-term savings, protection and investment
Group. Originating in South Africa in 1845, the Group provides life assurance,
asset management, banking and general insurance in Europe, the Americas, Africa
and Asia. Old Mutual plc is listed on the London Stock Exchange and the JSE,
among others.
In the year ended 31 December 2009, the Group reported adjusted operating profit
before tax of GBP1.2 billion (on an IFRS basis) and had GBP285 billion of funds
under management at the year end. The Group has approximately 54,000 employees.
For further information on Old Mutual plc, please visit the corporate website at
www.oldmutual.com
15 December 2010
Sponsor:
Merrill Lynch SA (Pty) Limited
Date: 15/12/2010 14:23:01 Produced by the JSE SENS Department.
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