Mutual & Federal take-out successfully achieved

Old Mutual’s bid to purchase the remaining Mutual & Federal shares has come to fruition with the announcement yesterday that all of the remaining conditions have been successfully fulfilled or waived. The Scheme of Arrangement proposed by Old Mutual in November 2009 was approved by an overwhelming majority of shareholders and despite a delay in obtaining certain regulatory approvals, the overall transaction was executed in a short period of time.

In terms of the revised timetable announced yesterday, the last date to trade in Mutual & Federal shares will be 29 January and the company will be suspended from 1 February. The shares will be delisted on 8 February 2010 at which time shareholders will receive Old Mutual shares in substitution for their Mutual &Federal holdings.

Keith Kennedy, managing director of Mutual & Federal noted that he was left with mixed emotions at the prospect of Mutual & Federal delisting after almost forty years. He added however “This is a significant milestone in the company’s history and at the same time, it is also a turning point for us as we look forward to the opportunities this deal will bring to the business and to our stakeholders.”

In conclusion, Kennedy expressed his confidence in the future of Mutual & Federal, “Our staff, customers and brokers can rest assured that many exciting new developments lie before us. This process might have signalled the end of the Mutual & Federal listing but it has also ushered in a new era that we are ready to embrace in order to see this company succeed and prosper.”