| Tue 30 Jan 2007, 17:33 | | NSX - OML - Old Mutual Plc - Arrangements relating |
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OML
OLOML
NSX - OML - Old Mutual Plc - Arrangements relating to closure of the Old
Mutual unclaimed Shares Trusts
OLD MUTUAL PLC
ISIN CODE: GB0007389926
JSE SHARE CODE: OML
NSX SHARE CODE: OLM
ISSUER CODE: OLOML
OLD MUTUAL PLC
Arrangements relating to closure of the Old Mutual Unclaimed Shares Trusts
This release provides further details of the proposed arrangements
following the previously announced closure of the Old Mutual Unclaimed
Shares Trusts in South Africa, Namibia, Zimbabwe, Malawi and Bermuda (the
Trusts) with effect from 31 August 2006 and the termination of any rights
to future claims in terms thereof.
Sale of remaining shares by the Trusts
The Trustees of the respective Trusts intend, in accordance with the
obligations conferred upon them by the respective Trust Deeds and relevant
Court Orders, to proceed to dispose, over the coming months, (by sale or
transfer, as agreed with Old Mutual plc (the Company)) of the remaining
59.4 million shares in the Company held by the Trusts. These shares have
been held by the Trusts and their predecessor trusts for the past seven
years, and represent approximately 2% of the total shares issued as free
shares at the time of the Company`s original demutualisation. The remaining
98% of shares were allocated to policyholders who duly confirmed their
rights to them either during the process of demutualisation or during the
currency of the Trust arrangements.
Out of the remaining 59.4 million shares, approximately 53.9 million relate
to the Trust in South Africa, 3.4 million to Zimbabwe, 1.5 million to
Namibia and 0.6 million to Malawi. The168,600 shares left in the Bermuda
Trust have already been sold.
The Trusts will pay over the proceeds of sale of these remaining shares to
the Company in due course.
Company`s intended use of the proceeds of sale
Subject to approval by the Company`s shareholders at the Annual General
Meeting in May 2007, the Company intends to use these proceeds, estimated
at GBP100 million (R1.4 billion), in proportion to the jurisdiction from
which they arose, as follows:
- Approximately GBP31 million (R430 million) will be set aside to
effectively extend the claim period of unconfirmed eligible
policyholders until 31 August 2009. Under these arrangements, any
future claims that would have been valid if submitted prior to 1
September 2006 will be settled by means of a cash payment based on the
closing share price on 31 August 2006 in the Trust jurisdiction
concerned (other than Zimbabwe, where an adjustment will be made at
the discretion of Old Mutual Zimbabwe for the effects of local
inflation);
- A total of approximately GBP48 million (R670 million), less any
potential taxes applicable to the disposal of the shares, will be used
to fund good causes or donated to the Old Mutual Foundation in the
jurisdiction of the Trust concerned;
- A total of approximately GBP21 million (R300 million) will be used to
enhance the benefits of specific small policyholders of the Group`s
life businesses in South Africa and Namibia.
The Company will make a more detailed announcement about its intended use
of the proceeds realised from the closure of the Trusts in due course.
30 January 2007
Old Mutual
For further information on Old Mutual plc, please visit the corporate
website at www.oldmutual.com
Enquiries
Investor
Relations
Malcolm Bell UK +44 (0)20 7002 7166
Deward Serfontein SA +27 82 810 5672
Media
Katie Bell UK +44 (0)20 7002 7163
Nad Pillay SA +27 (0)21 504 8026
Forward-looking statements
This announcement or presentation may contain certain forward-looking
statements with respect to certain of Old Mutual plc`s plans and its
current goals and expectations relating to its future financial condition,
performance and results. By their nature, all forward-looking statements
involve risk and uncertainty because they relate to future events and
circumstances that are beyond Old Mutual plc`s control, including, among
other things, UK domestic and global economic and business conditions,
market-related risks such as fluctuations in interest rates and exchange
rates, policies and actions of regulatory authorities, the impact of
competition, inflation, deflation, the timing and impact of other
uncertainties or of future acquisitions or combinations within relevant
industries, as well as the impact of tax and other legislation and other
regulations in territories where Old Mutual plc or its affiliates operate.
As a result, Old Mutual plc`s actual future financial condition,
performance and results may differ materially from the plans, goals and
expectations set forth in Old Mutual plc`s forward-looking statements. Old
Mutual plc undertakes no obligation to update any forward-looking
statements contained in this announcement or presentation or any other
forward-looking statements that it may make.
Date: 30/01/2007 17:33:01 Produced by the JSE SENS Department.
