Old Mutual announces that the share repurchase programme announced by the Company on 11 March 2019 has been extended by R500 million, bringing the maximum consideration of the share repurchase programme to R2.5 billion (the “Extended Programme”).
As previously, the Extended Programme will be effected in accordance with the General Authority received by way of a shareholder resolution passed at the AGM, held on 6 March 2018, allowing the Company to repurchase up to 247 102 418 ordinary shares, equivalent to 5% of the issued share capital of the Company. OML has approval from the Prudential Authority for the Extended Programme.
The OML Board believes that OML is trading at a discount to its intrinsic value and is of the view that a share repurchase programme will deliver longer term incremental value to shareholders. The management team remains committed to following a disciplined trading approach under the share repurchase programme and will only repurchase shares to the extent that market conditions are favourable. The purpose of the repurchase programme is to reduce the share capital of the Company.
The Repurchased Shares shall be cancelled as issued shares and will revert to authorised but unissued share capital status.