8th Nov 2007 07:05
Old Mutual PLC08 November 2007 Old Mutual Ref 76/07 8 November 2007 POTENTIAL OFFER FOR OLD MUTUAL'S STAKE IN MUTUAL & FEDERAL Old Mutual plc ("Old Mutual") confirms that it is currently in discussions withcommunity-based investment group, Royal Bafokeng Holdings (Proprietary) Limited("RBH"), which may result in the sale by Old Mutual to RBH of a controllinginterest in Mutual & Federal Insurance Company Limited ("Mutual & Federal"), theshort-term insurer in which Old Mutual has a majority stake. If the potentialoffer proceeds, RBH would make an offer for all of the issued share capital ofMutual & Federal and Old Mutual would undertake to accept it in relation to aminimum of 60% and a maximum of 70% out of its overall approximately 75% stakein Mutual & Federal. The indicative offer price for this transaction (which is subject tosatisfactory due diligence by RBH) is R27.50 per share, to be reduced to reflectany dividends (and associated taxes) paid by Mutual & Federal prior to theclosing of the potential offer, and to be adjusted upwards for the time value ofmoney between today's date and settlement. The indicative offer price representsan approximate 5% premium to the 30-day volume weighted average market price ofMutual & Federal shares for the period up to 2 November 2007. If the potential offer were made and was successful, RBH would become themajority shareholder in Mutual & Federal, but Old Mutual has been informed byRBH that it would not seek to acquire minorities' shares compulsorily and wouldmaintain Mutual & Federal's listings on the JSE Limited and the Namibian StockExchange, subject to their respective listings requirements. Full details of the potential offer by RBH for Mutual & Federal are expected tobe announced in mid-December 2007. Enquiries Investor RelationsAleida van Herel UK +44 (0)20 7002 7287Deward Serfontein SA +27 (0)21 509 8709 MediaJames Crampton UK +44 (0)20 7002 7133Nad Pillay SA +27 (0)82 553 7980 Notes to Editors Mutual & Federal Mutual & Federal provides insurance services to the personal, commercial andcorporate markets in South Africa, Namibia, Botswana and Zimbabwe. Old Mutual owns 75% of Mutual & Federal Insurance Company Limited on afully-diluted basis, after taking account of Mutual & Federal's BEE ownershiptransactions. Mutual & Federal's shares are listed on the JSE Limited and theNamibian Stock Exchange. Royal Bafokeng Holdings (RBH) RBH is the primary investment vehicle of the Royal Bafokeng nation, a communityof approximately 300,000 Tswana-speaking people with substantial holdings ofmineral-rich land in the North West province of South Africa. RBH has significant capital derived from the leasing of mining rights to thelargest platinum mining companies in South Africa. RBH has declared itsintention to diversify its income stream by investing in assets such asproperty, industrial and financial services companies. The intended acquisitionof a majority stake in Mutual & Federal represents an opportunity to developthis strategy. For further information on RBH, please visit www.bafokengholdings.com Old Mutual Old Mutual plc is an international savings and wealth management company basedin the UK. Originating in South Africa in 1845, the group has a balancedportfolio of businesses offering asset management, life assurance, banking andgeneral insurance services in over 40 countries, primarily South Africa, Europeand the United States. Old Mutual is listed on the London Stock Exchange and theJSE Limited, among others. In the year ended 31 December 2006, the group reported adjusted operating profitof £1.4 billion (on an IFRS basis). Old Mutual had £263 billion of funds undermanagement and 53,000 employees at 30 June 2007. For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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