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Tuesday, May 1, 2007
In proportion

The Old Mutual South Africa Unclaimed Shares Trust (UST) has completed its programme of sales of a total of approximately 53.9 million shares, achieving an average price before expenses and tax of R24.04 per share over the six-week duration of the programme.

Proposals for the use of these proceeds of sale (together with the residual assets in the other four Unclaimed Shares Trusts) are being submitted for shareholder approval at the Annual General Meeting Old Mutual plc, which will take place in London on 24th May 2007.
This follows the 30th January 2007 announcement that the Trustees of the UST would be disposing of their remaining shareholdings.
Subject to approval by the Company’s shareholders, it intends to use the proceeds of sale in proportion to the jurisdiction from which they arose, as follows:
• approximately £31 million (R430 million) will be set aside effectively to extend the claims period of unconfirmed eligible policyholders until 31st August 2009. Under these arrangements, any future claims that would have been valid if submitted prior to 1st September 2006 will be settled by means of a cash payment based on the closing share price on 31st 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 either directly or via donation to the Old Mutual Foundations to fund good causes 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.
 

Copyright © Insurance Times and Investments® Vol:20.4 1st May, 2007
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