Old Mutual: Arrangements relating to closure of the Old M...

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. 30 January 2007 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 was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://wpy.waymaker.net/client/waymaker1/f.aspx?id=368670&fn=wkr0010.pdf