Old Mutual Bee Deal Matures

OLD MUTUAL this week announced the maturity of its broad-based black economic empowerment transactions that to date have created net value of over N$7,9 billion for Old Mutualacutes South African empowerment partners, staff and communities. The company runs a similar scheme in Namibia.

The BEE transactions originally entered into by Old Mutual and Mutual amp Federal Insurance Company during 2005, involved shares valued at N$4,1 billion, and representing approximately 13% of the equity value of Old Mutualacutes South African operations at the time, being issued to its BEE participants.

The subscription terms for the shares issued were designed to facilitate the ownership levels required under South African broad-based black economic empowerment legislation by enabling the BEE participants to benefit from the increase in the groupacutes value over ten years. “Our Black Business Partners included the WIPHOLD Consortium, the Brimstone Consortium and Mtha, for whom a combined N$2,1 billion in net value was created,” the company said in a statement on the Namibian Stock Exchange.

Old Mutual South Africa staff also benefited through various employee share trusts that formed part of the BEE transactions, creating a net value of N$4,6 billion for around 9 000 employees.

The process of unwinding the BEE transactions includes settlement of the balance of the cash undertakings given by certain BEE participants when the shares were originally issued. This totals N$3,2 billion as at 30 April. Of this, N$1,7 billion has already been received by the group, with the balance expected to be received by the end of June.

“We are clear about the role we play in society and our responsibility to help drive positive change. We are pleased that our BEE transactions have contributed positively to improving the quality of the lives of communities across South Africa. Old Mutual remains committed to ongoing transformation and development of South Africa through our focus on investment in socially responsible projects, BEE funding, infrastructure investment and support of education initiatives,” said Patrick OacuteSullivan, chairman of Old Mutual.

Source : The Namibian