Old Mutual p.l.c.
4 Aug 2005
Law Debenture participated in the transactions implemented on 4 August 2005 involving the issue of approximately Rand 7.2 billion worth of new shares in Old Mutual plc, as apart of the Black Economic Empowerment ("BEE") initiatives under the terms of the Financial Sector Charter of South Africa.
Old Mutual is an international financial services group with dual listing on the London and Johannesburg stock exchanges. Under the transaction, Law Debenture was allotted just over 115 million newly issued Old Mutual shares to hold on behalf of four BEE companies and certain other beneficiaries. The four BEE companies represent consortia of black employees, trade unions, clients, distributors, communities and business partners of Old Mutual. While The Law Debenture Trust Corporation (Channel Islands) Limited (in Jersey) was appointed the Share Trustee, another role in the transaction was granted to The Law Debenture Trust Corporation plc in London to act as security trustee in connection with certain related matters.
Law Debenture's position meant that it was able to act for the range of beneficiaries under the transaction with differing respective interests. Law Debenture is an independent trustee company and is therefore not owned by, or affiliated to, any bank or other company. Law Debenture is pleased to have been involved in the Old Mutual transaction from the structuring phase onwards, in devising with OM's advisers the shape of the shares trusts and security trusts arrangements as well as all related ancillary arrangements.
In addition to its traditional function of providing leading independent capital markets trustee services in the international capital markets, the Old Mutual transaction provides an example of an innovative corporate finance transaction of the type in which Law Debenture (acting out of London and its other offices globally) is increasingly involved.
Corporate Trust
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