Statement re:Possible Offer Home Retail Group Plc

3rd February 2016

LONDON

OLD MUTUAL GLOBAL INVESTORS

Statement regarding Possible Offer by J Sainsbury plc for Home Retail Group plc

Old Mutual Global Investors, part of Old Mutual Wealth, today announces that it regards the possible offer for Home Retail Group plc by J Sainsbury plc to be fair, taking into account the acceleration of the Argos transformation plan within Sainsbury's.

The agreed terms are below the 200 pence per share level which appeared in remarks to the media by Old Mutual Global Investors after the initial approach by J Sainsbury plc. Since that time there has been the agreed disposal of Homebase by Home Retail, their update on Christmas trading and more detail on the opportunities for Home Retail within the Sainsbury group.

Following discussions with representatives of both parties, we have concluded that the terms of the agreed offer are fair, reflective of the future potential of the Argos business and the risk still associated with the transformation plan.

Old Mutual Global Investors currently holds 3.6% of Home Retail Group plc voting rights across the business or 29,420,408 nominal shares.

-ends-

Media Enquiries:

Vee Montebello, Old Mutual Global Investors, 020 7 332 7687

Notes to Editors:

Old Mutual Global Investors:

Old Mutual Global Investors has grown strongly since its creation in August 2012 and now has assets under management of £22.2 billion¹. The team consists of 230 industry professionals, including a team of 59 investment professionals. As part of Old Mutual Group it has a strong financial parent to support the activation of its business strategy. Old Mutual Global Investors is the asset management division of Old Mutual Wealth. To find out more information please go to: www.omglobalinvestors.com

Old Mutual Wealth:

Old Mutual Wealth is the leading wealth management business in the UK and internationally, helping people secure their financial future.

It has an adviser and customer offering spanning:

• Financial advice via the Intrinsic network

• Platform based wealth management products and services via Old Mutual

Wealth in the UK and Old Mutual International globally

• Asset management solutions via Old Mutual Global Investors

• Discretionary investment management via Quilter Cheviot

Old Mutual Wealth oversees £98.7 billion¹ in customer investments.Old Mutual Wealth is part of Old Mutual plc, a FTSE 100 group that provides investment, savings, insurance and banking services to more than 17 million customers in Africa, the Americas, Asia and Europe. Originating in South Africa in 1845, Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999.

In the year ended 31 December 2014, the Group reported adjusted operating profit before tax of £1.6 billion (on an IFRS basis) and had £319 billion of funds under management from core operations.

This press release is for journalists only and should not be relied upon by financial advisers or customers.

 ¹ as at 30 September 2015

Please remember that past performance is not a guide to future performance. Investment involves risks. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall. 

This communication is issued by Old Mutual Global Investors (UK) Limited. Old Mutual Global Investors (UK) Limited is the appointed investment adviser for Old Mutual Investment Management Limited's in-house funds. Old Mutual Global Investors is the trading name of Old Mutual Global Investors (UK) Limited and Old Mutual Investment Management Limited. Old Mutual Investment Management Limited, Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ. Authorised and regulated by the Financial Conduct Authority. Old Mutual Global Investors (UK) Limited, Millennium Bridge House, 2 Lambeth Hill, London EC4P 4AJ. Authorised and regulated by the Financial Conduct Authority. A member of the Investment Association. OMGI 01/16/0327.