Orascom Inv Regulatory News (OIH)

20 October 2011

Canopius Group Limited ("Canopius")

Withdrawal of offer for Omega Insurance Holdings Limited ("Omega")

Further to today's announcement by Omega, Canopius confirms that it is withdrawing its offer to acquire all of the issued and to be issued share capital of Omega. Canopius submitted a revised offer on 13th October at a higher price than previously indicated and higher than the upper limit of the tender offer by Haverford (Bermuda) Limited ("Haverford"). The consideration offered for Omega was all cash which would have satisfied a majority of shareholders who desired the opportunity for a total cash exit. The largest shareholder in Omega indicated a desire to retain an ongoing participation and was therefore offered the opportunity to reinvest a substantial part of its cash proceeds in stock of the enlarged Canopius Group.

In view of its inability to secure a recommendation from the Board of Omega and the support of its largest shareholder for its offer, Canopius is withdrawing from the process. However, Canopius reserves the right to make or participate in an offer for Omega in the future if there is a material change in circumstances.

Commenting, Michael Watson, Chairman of Canopius, said: "Our revised offer provided increased value and complete certainty for all shareholders - 100% cash, at a higher price than the Haverford offer. At the same time, Invesco Perpetual was offered the opportunity to acquire stock in Canopius Group. We are disappointed not to be able to proceed with our offer and wish Omega and its shareholders all good fortune. Canopius will continue to review strategic opportunities to supplement its successful organic growth."

Enquiries:

Canopius

Tel: +44 (0)20 7337 3700

Michael Watson, Chairman

Keefe, Bruyette & Woods

(Joint financial adviser to Canopius)

Tel: +44 (0)20 7663 5400

Stephen Howard

Max Cornu-Thenard

Aon Benfield Securities

(Joint financial adviser to Canopius)

Tel: +44 (0)20 7578 7000

Andrew Beecroft

Ross Milburn

Citigate Dewe Rogerson

(PR adviser to Canopius)

Tel: +44 (0) 20 7638 9571

Mobile: +44 (0) 7973 611 888

Anthony Carlisle