30th Jan 2007 15:30
Old Mutual PLC30 January 2007 Old Mutual plc Ref: 04/07 30 January 2007 Arrangements relating to closure of the Old Mutual Unclaimed Shares TrustsThis release provides further details of the proposed arrangements following thepreviously announced closure of the Old Mutual Unclaimed Shares Trusts in SouthAfrica, Namibia, Zimbabwe, Malawi and Bermuda (the Trusts) with effect from31 August 2006 and the termination of any rights to future claims in termsthereof. Sale of remaining shares by the Trusts The Trustees of the respective Trusts intend, in accordance with the obligationsconferred upon them by the respective Trust Deeds and relevant Court Orders, toproceed to dispose, over the coming months, (by sale or transfer, as agreed withOld Mutual plc (the Company)) of the remaining 59.4 million shares in theCompany held by the Trusts. These shares have been held by the Trusts and theirpredecessor trusts for the past seven years, and represent approximately 2% ofthe total shares issued as free shares at the time of the Company's originaldemutualisation. The remaining 98% of shares were allocated to policyholders whoduly confirmed their rights to them either during the process of demutualisationor during the currency of the Trust arrangements. Out of the remaining 59.4 million shares, approximately 53.9 million relate tothe Trust in South Africa, 3.4 million to Zimbabwe, 1.5 million to Namibia and0.6 million to Malawi. The168,600 shares left in the Bermuda Trust have alreadybeen sold. The Trusts will pay over the proceeds of sale of these remaining shares to theCompany in due course. Company's intended use of the proceeds of sale Subject to approval by the Company's shareholders at the Annual General Meetingin May 2007, the Company intends to use these proceeds, estimated at £100million (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 theproceeds realised from the closure of the Trusts in due course. Old Mutual For further information on Old Mutual plc, please visit the corporate website atwww.oldmutual.com Enquiries Investor RelationsMalcolm Bell UK +44 (0)20 7002 7166Deward Serfontein SA +27 82 810 5672 MediaKatie Bell UK +44 (0)20 7002 7163Nad Pillay SA +27 (0)21 504 8026 Forward-looking statements This announcement or presentation may contain certain forward-looking statementswith respect to certain of Old Mutual plc's plans and its current goals andexpectations relating to its future financial condition, performance andresults. By their nature, all forward-looking statements involve risk anduncertainty because they relate to future events and circumstances that arebeyond Old Mutual plc's control, including, among other things, UK domestic andglobal economic and business conditions, market-related risks such asfluctuations in interest rates and exchange rates, policies and actions ofregulatory authorities, the impact of competition, inflation, deflation, thetiming and impact of other uncertainties or of future acquisitions orcombinations within relevant industries, as well as the impact of tax and otherlegislation and other regulations in territories where Old Mutual plc or itsaffiliates operate. As a result, Old Mutual plc's actual future financial condition, performance andresults may differ materially from the plans, goals and expectations set forthin Old Mutual plc's forward-looking statements. Old Mutual plc undertakes noobligation to update any forward-looking statements contained in thisannouncement or presentation or any other forward-looking statements that it maymake. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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