OMAM announces closing of secondary offering

RNS Number : 2973S

Old Mutual PLC

20 December 2016

 

Old Mutual plc

Ref 561/16

20 December 2016

OM Asset Management Announces Closing of Secondary Offering And Full Exercise of Underwriters' Option to Purchase Additional Shares

OM Asset Management plc ('OMAM') announced today the closing of an underwritten public offering of 14.95 million of its ordinary shares, including 1.95 million ordinary shares sold pursuant to the full exercise of the underwriters' previously granted option to purchase additional shares. The shares were sold by Old Mutual plc ('Old Mutual') at a public offering price of $14.25 per share.

In addition, the previously announced private repurchase transaction, in which OMAM repurchased 6 million ordinary shares directly from OM Group (UK) Limited (a wholly owned subsidiary of Old Mutual), at a price of $14.25 per share, closed on 19 December 2016.

Old Mutual will realise gross proceeds less the underwriting discount from the offering of $291 million.

Following the sale, Old Mutual now owns 51.1% of OMAM. OMAM did not sell any shares in the

offering and did not receive any proceeds from the offering.

The proceeds to Old Mutual from the offering and private repurchase transaction are expected to be used for general corporate purposes.

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

Copies of the prospectus supplement relating to the public offering may be obtained from: BofA Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd floor Charlotte, NC 28255-0001, Attn: Prospectus Department, Email: [e-mail] 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: [e-mail] or Evercore ISI, Attention: Equity Capital Markets, 55 East 52nd Street, 36th Floor, New York, NY 10055, email [e-mail]. The prospectus may also be obtained, for free, by visiting the SEC's website at www.sec.gov.

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        [phone]

Investor relations

Dominic Lagan                           UK        [phone]

Sizwe Ndlovu                             SA        [phone]

Media

William Baldwin-Charles                         [phone]

                                                            [phone]

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: With effect from completion of the transaction described in this announcement, Old Mutual will own 51% 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.

 

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