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OLD MUTUAL PLC - OM Asset Management Launches Public Offering and enters into a Repurchase Agreement with Old Mutual plc

Release Date: 13/12/2016 09:00
Code(s): OML     PDF:  
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OM Asset Management Launches Public Offering and enters into a Repurchase Agreement with Old Mutual plc

       OLD MUTUAL PLC
       ISIN CODE: GB00B77J0862
       JSE SHARE CODE: OML
       NSX SHARE CODE: OLM
       ISSURE CODE: OLOML
       Old Mutual plc

       Ref 555/16
       13 December 2016

       OM ASSET MANAGEMENT LAUNCHES PUBLIC OFFERING AND ENTERS INTO A
       REPURCHASE AGREEMENT WITH OLD MUTUAL PLC

       Old Mutual plc (“Old Mutual”) today announces that OM Asset Management plc
       (“OMAM”) has launched a public offering of 13 million of its ordinary
       shares. The ordinary shares are being offered by Old Mutual, through its
       wholly owned subsidiary, OM Group (UK) Limited. The underwriters also have
       a 30-day option to purchase up to an additional 1.95 million ordinary
       shares at the public offering price, less the underwriting discount.

       In addition, on 12 December 2016, OMAM entered into a Repurchase Agreement
       with Old Mutual and OM Group (UK) Limited pursuant to which OMAM agreed to
       repurchase 6 million ordinary shares directly from OM Group (UK) Limited in
       a private transaction at the price per ordinary share sold to the public by
       OM Group (UK) Limited in the public offering. The closing of this
       repurchase transaction is subject to various conditions, including the
       closing of the public offering.

       The proceeds to Old Mutual from the proposed offering and Repurchase
       Agreement are expected to be used for general corporate purposes.

       Old Mutual intends to continue the reduction of its holdings in OMAM in an
       orderly manner which balances value, cost, time, and risk.

       BofA Merrill Lynch, Morgan Stanley & Co. LLC, Citigroup, Credit Suisse
       Securities (USA) LLC and Evercore ISI are acting as joint bookrunning
       managers for the offering.

       The public offering is being made pursuant to an effective shelf
       registration statement on file with the U.S. Securities and Exchange
       Commission (the “SEC”). A preliminary prospectus supplement relating to the
       public offering, subject to completion, has been filed with the SEC, and a
       final prospectus supplement relating to the public offering will be filed
       with the SEC. Interested parties should read the prospectus included in the
       registration statement and the prospectus supplement for the public
       offering, and other documents that OMAM has filed with the SEC for more
       complete information about OMAM and the public offering.

       Copies of the preliminary prospectus supplement relating to the public
       offering may be obtained, when available, from: BofA Merrill Lynch,
       Attention: Prospectus Department, 222 Broadway, New York, NY 10038, email:
       dg.prospectus_requests@baml.com or Morgan Stanley & Co. LLC, Attention:
       Prospectus Department, 180 Varick Street, Second Floor, New York, NY 10014
       or Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
       Edgewood, NY 11717 or Credit Suisse Securities (USA) LLC, Attention: Credit
       Suisse Prospectus Department, One Madison Avenue, New York, NY 10010, 
       e-mail: newyork.prospectus@credit-suisse.com or Evercore ISI, Attention:
       Equity Capital Markets, 55 East 52nd Street, 36th Floor, New York, NY
       10055, email ECM_Prospectus@evercoreisi.com.

       This press release shall not constitute an offer to sell or the
       solicitation of an offer to buy nor shall there be any sale of these
       securities in any state or jurisdiction in which such offer, solicitation
       or sale would be unlawful prior to registration or qualification under the
       securities laws of any such state or jurisdiction.

       Ends
       Enquiries
       External communications
       Patrick Bowes                UK    +44 20 7002 7440
       Investor relations
       Dominic Lagan                UK    +44 20 7002 7190
       Sizwe Ndlovu                 SA    +27 11 217 1163

       Media
       William Baldwin-Charles      +44 20 7002 7133
                                    +44 7834 524833

       Notes to Editors
       Old Mutual provides investment, savings, insurance and banking services to
       18.9 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.

       Old Mutual has announced a strategy of managed separation, which will
       entail separating its four businesses into standalone entities. The four
       businesses are:

       Old Mutual Emerging Markets: An African financial services leader,
       providing long-term savings, protection, investment and lending to retail
       and corporate customers

       Nedbank: Old Mutual owns a 54% stake in Nedbank, one of South Africa’s top
       four banks, providing wholesale and retail banking, insurance and asset
       management for individuals and businesses

       Old Mutual Wealth: a leading wealth management business in the UK and
       international markets

       OM Asset Management: Old Mutual owns 66% in the New York Stock Exchange
       listed OM Asset Management which offers a diverse range of investment
       strategies and products for institutions, delivered worldwide through eight
       US-based boutiques.

       For the year ended 31 December 2015, Old Mutual reported an adjusted
       operating profit before tax of £1.7 billion and had £304 billion of funds
       under management. For further information on Old Mutual, please visit the
       corporate website at www.oldmutual.com

       Forward-Looking Statements
       The information in this release contains forward-looking information that
       involves substantial risks and uncertainties regarding the proposed
       offering. Forward-looking information includes information about the
       closing of the transactions pursuant to the repurchase agreement and the
       use of proceeds from the transactions. Risks and uncertainties affecting
       these forward-looking statements include, among other things, the
       possibility that the proposed offering and the transactions under the
       repurchase agreement will not be completed within a particular time frame
       or at a particular offering amount, or at all, including as a result of
       regulatory, market or other factors. Old Mutual assumes no obligation to
       update forward-looking statements contained in this release as the result
       of new information, future events or developments.

       Sponsor:
       Merrill Lynch South Africa (Pty) Ltd

       Joint Sponsor:
       Nedbank Corporate and Investment Banking


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