Old Mutual Ltd - Cape Town-based investments, savings, insurance and banking company - Enters into a ZAR2.8 billion broad-based Black Economic Empowerment ownership transaction, named the Bula Tsela transaction. This is to meet and exceed its 30% B-BBEE ownership target. This will be achieved through the issue of 205.3 million shares for cash, representing around 4.4% of the company.
Old Mutual's employee share ownership trusts will get 1.6% of the company. All employees, regardless of their race, can participate in the scheme but to make sure that Old Mutual achieves its Black ownership target, it will disproportionately allocate more shares towards Black South African employees. Black members of the public will receive 1.4% and the remaining 1.4% will go to a community trust focused on benefiting Black individuals and Black small and medium-sized enterprises.
Current London stock price: 61.80 pence
12-month change: down 6.7%
Current Johannesburg stock price: ZAR12.9
12-month change: down 7.6%
By Heather Rydings; heatherrydings@alliancenews.com
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Old Mutual Lim. (OMU)