Proposed sale of Old Mutual's Nordic business: Issue of circular and proposed [pounds sterling]1 billion special dividend.

M2 PRESSWIRE-February 3, 2012-: Proposed sale of Old Mutual's Nordic business: Issue of circular and proposed [pounds sterling]1 billion special dividend(C)1994-2012 M2 COMMUNICATIONS
RDATE:03022012
Further to the announcement by Old Mutual plc on 15 December 2011 that it intends to divest its Nordic business, comprising Old Mutual's long-term savings and banking operations in Sweden, Denmark and Norway, to Skandia Liv for net cash consideration of SEK22.4 billion ([pound sign]2.1 billion), Old Mutual announces that a circular containing further details of the Disposal, the related Special Dividend and Share Consolidation, together with a notice convening a General Meeting is today being sent to Ordinary Shareholders.
The General Meeting will be held in the Presentation Suite, 2nd Floor, Old Mutual Place, 2 Lambeth Hill, London, EC4V 4GG at 11:00 a.m. on 14 March 2012, to approve the Disposal and the Share Consolidation. 

A copy of the circular is now available on the Group's website at www.oldmutual.com/ir . Definitions found in this announcement are consistent with those set out in the circular.
Key Points (which should be read in conjunction with the full text of the circular): Old Mutual intends to return approximately [pound sign]1 billion of net proceeds from the Disposal to Ordinary Shareholders by means of a Special Dividend (equivalent to 18 pence per Ordinary Share, or its equivalent in other applicable local currencies). Old Mutual intends to use the remaining [pound sign]1.1 billion of net proceeds, subject to regulatory approvals, to reduce indebtedness. Old Mutual's capital flexibility will be enhanced by retaining an increased proportion of the cash flows expected to be generated from operational activity and other corporate actions planned for 2012. As at 31 January 2012, the Group had repaid approximately [pound sign]600 million of debt and, based on the use of net proceeds from the Disposal, will meet its [pound sign]1.5 billion debt reduction target by the end of 2012, subject to regulatory approvals. The Group expects a total of approximately [pound sign]1.7 billion to be repaid under the Group's increased debt repayment plan. If the Disposal is approved at the General Meeting on 14 March 2012, Completion is currently expected to occur on or around 21 March 2012. The timing of Completion is dependent upon, amongst other things, the satisfaction of regulatory conditions. The necessary competition authority approvals have already been obtained and regulatory approvals are expected during February 2012. Subject to the timely receipt of regulatory approvals, it is expected that the timing of the payment of the Special Dividend and the Share Consolidation (if approved) will be announced with the Group's 2011 preliminary results. It is the Board's current intention for the Special Dividend to be paid at the same time as the Group's 2011 final dividend. This is likely to be in early to mid-June 2012. The Group will announce its preliminary results for 2011 on 9 March 2012 and expects these to reflect continued strong operational performance in the second half of 2011. Extracts from the circular regarding current trading are set out in the Appendix to this announcement.