Introduction

The Old Mutual Group (which comprises Old Mutual plc, its subsidiaries, joint ventures and associates) proposes three separate but inter-dependent transactions which will introduce new direct broad-based black ownership in each of its South African subsidiaries which equates to:

• 13.48% of Old Mutual (SA) which includes all of Old Mutual plc’s South African businesses with the exception of its investments in Nedcor and Mutual & Federal, through the issue of new ordinary share capital of Old Mutual plc which will amount to 5.58% of the enlarged issued share capital of Old Mutual plc. Shareholders will be requested to approve the issue of 5.98% of Old Mutual plc’s current issued share capital;
• 11.50% of Nedcor’s South African businesses, through the issue of new ordinary share capital of Nedcor which will amount to 9.33% of the enlarged issued share capital. Shareholders will be requested to approve the issue of 10.46% of Nedcor’s current issued share capital; and
• 11.00% of Mutual & Federal, through the issue of new ordinary share capital of Mutual & Federal which will amount to 11.00% of the enlarged issued share capital. Shareholders will be requested to approve the issue of 12.54% of Mutual & Federal’s current issued share capital,

Based on Old Mutual plc’s effective interest in each of these subsidiaries, the Group Transactions will result in the introduction of direct black ownership worth 12.75% of the value of Old Mutual plc’s South African businesses and are subject to the various conditions precedent set out in this announcement which include shareholder, regulatory and various other approvals.