Assupol Life celebrates as the High Court rules in favour of demutualisation

The North Gauteng High Court today ruled in favour of the application by Assupol Life to demutualise. The decision sets in motion the restructuring of the group into a holding Company (Assupol Holdings Limited) and two operating businesses namely Assupol Life Limited and Assupol Investments (Pty) Limited and paves the way for a primary listing of Assupol Holdings on the Johannesburg Securities Exchange (JSE) within the next twenty-four months.

Mr Rudi Schmidt, CEO of the Assupol group said they were delighted with the positive news. “Today is not only a milestone in the history of Assupol but also a significant step towards its future. The hard work of the Assupol Life team and its advisors, Webber Wentzel Attorneys, during the last few months has finally paid off”, he said. Schmidt was delighted with the approval of the demutualisation. He added, “This paves the way to place more than half a billion rand, in the form of over 400 million shares, in the hands of policyholders of Assupol Life. Besides the allocation of free shares to qualifying policyholders of Assupol Life, the demutualisation scheme also provides for the creation of a community trust which will uplift and support the communities where large concentrations of Assupol policyholders reside”.

The demutualisation also puts Assupol in the position to raise capital for its organic growth and expansion.

Assupol Life undertook a two week long road show process throughout South Africa to inform its policyholders of what the demutualisation means, to answer questions and to address any concerns. “The road shows were an eye opening experience to all and it gave us a chance to meet the people who really ‘own’ Assupol Life. The second part of our journey will be to make sure that our policyholders become proud shareholders of Assupol Life's new holding company, Assupol Holdings Limited”, said Schmidt.

The demutualisation process started in May 2010 with a formal notification to the Financial Services Board. As part of the demutualisation process, Assupol Life had to comply with various statutory requirements including those from the Financial Services Board. Such statutory requirements included communication with its policyholders and ultimately a High Court application.

Mr Schmidt said the process to meet with potential investors and future shareholders including fund managers will start in the new year.

The company intends to raise cash to grow its business and create value for its shareholders.