Old Mutual PLC Regulatory News (OML)

Old Mutual plc

Ref 557/16

14 December 2016

OM Asset management announces pricing of secondary offering

OM Asset Management plc ("OMAM") has announced the pricing of an underwritten public offering of 13 million of its ordinary shares at a public offering price of $14.25 per share. The public offering is expected to close on 19 December 2016.

The ordinary shares are being offered by Old Mutual plc ("Old Mutual"), through its wholly owned subsidiary, OM Group (UK) Limited. The underwriters also have a 30-day option to purchase up to an additional 1.95 million ordinary shares at the public offering price, less the underwriting discount. OMAM will not sell any shares in the offering and will not receive any proceeds from the sale of the shares.

In addition, the previously announced private repurchase transaction, in which OMAM expects to repurchase 6 million ordinary shares directly from OM Group (UK) Limited was also priced at $14.25 per share. The closing of the repurchase transaction is subject to various conditions, including the closing of the public offering.

The proceeds to Old Mutual from the proposed offering and Repurchase Agreement are expected to be used for general corporate purposes.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, Citigroup, Credit Suisse Securities (USA) LLC and Evercore ISI are acting as joint bookrunning managers for the public offering.

The public offering is being made pursuant to an effective shelf registration statement on file with the U.S. Securities and Exchange Commission (the "SEC"). A preliminary prospectus supplement relating to the public offering, subject to completion, has been filed with the SEC, and a final prospectus supplement relating to the public offering will be filed with the SEC. Interested parties should read the prospectus included in the registration statement and the prospectus supplement for the public offering, and other documents that OMAM has filed with the SEC for more complete information about OMAM and the public offering.

Copies of the preliminary prospectus supplement relating to the public offering may be obtained, when available, from: BofA Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd floor Charlotte, NC 28255-0001, Attn: Prospectus Department, Email: dg.prospectus_requests@baml.com or Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, Second Floor, New York, NY 10014 or Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or Credit Suisse Securities (USA) LLC, Attention: Credit Suisse Prospectus Department, One Madison Avenue, New York, NY 10010, e-mail: newyork.prospectus@credit-suisse.com or Evercore ISI, Attention: Equity Capital Markets, 55 East 52nd Street, 36th Floor, New York, NY 10055, email ECM_Prospectus@evercoreisi.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Ends

Enquiries

External communications

Patrick Bowes UK +44 20 7002 7440

Investor relations

Dominic Lagan UK +44 20 7002 7190

Sizwe Ndlovu SA +27 11 217 1163

Media

William Baldwin-Charles +44 20 7002 7133

+44 7834 524833

Notes to Editors

Old Mutual provides investment, savings, insurance and banking services to 18.9 million customers in Africa, the Americas, Asia and Europe. Originating in South Africa in 1845, Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999.

Old Mutual has announced a strategy of managed separation, which will entail separating its four businesses into standalone entities. The four businesses are:

Old Mutual Emerging Markets: An African financial services leader, providing long-term savings, protection, investment and lending to retail and corporate customers

Nedbank: Old Mutual owns a 54% stake in Nedbank, one of South Africa's top four banks, providing wholesale and retail banking, insurance and asset management for individuals and businesses

Old Mutual Wealth: a leading wealth management business in the UK and international markets

OM Asset Management: Old Mutual owns 66% in the New York Stock Exchange listed OM Asset Management which offers a diverse range of investment strategies and products for institutions, delivered worldwide through eight US-based boutiques.

For the year ended 31 December 2015, Old Mutual reported an adjusted operating profit before tax of £1.7 billion and had £304 billion of funds under management. For further information on Old Mutual, please visit the corporate website at www.oldmutual.com 

Forward-Looking Statements

The information in this release contains forward-looking information that involves substantial risks and uncertainties regarding the proposed offering. Forward-looking information includes information about the closing of the transactions pursuant to the repurchase agreement and the use of proceeds from the transactions. Risks and uncertainties affecting these forward-looking statements include, among other things, the possibility that the proposed offering and the transactions under the repurchase agreement will not be completed within a particular time frame or at a particular offering amount, or at all, including as a result of regulatory, market or other factors. Old Mutual assumes no obligation to update forward-looking statements contained in this release as the result of new information, future events or developments.