Unclaimed Shares Trust
Old Mutual PLC
30 January 2007
Old Mutual plc
Ref: 04/07
30 January 2007
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 £100
million (R1.4 billion), in proportion to the jurisdiction from which they arose,
as follows:
• Approximately £31 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 £48 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 £21 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.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 59 minutes ago Judges Scientific
- 1 hour ago AB Dynamics
- 1 hour ago Henry Boot
- 1 hour ago TPXimpact Holdings
- 1 hour ago Ithaca Energy