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Johannesburg - The North Gauteng High Court in Pretoria on Thursday 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, Assupol Life Limited and Assupol Investments (Pty) Limited. It also paves the way for a primary listing of Assupol Holdings on the JSE within the next 24 months.
Rudi Schmidt, CEO of the Assupol group, was delighted with the positive news.
"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 organic growth and expansion.
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.
These included communication with its policyholders and ultimately a High Court application.
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.
The decision sets in motion the restructuring of the group into a holding company (Assupol Holdings Limited) and two operating businesses, Assupol Life Limited and Assupol Investments (Pty) Limited. It also paves the way for a primary listing of Assupol Holdings on the JSE within the next 24 months.
Rudi Schmidt, CEO of the Assupol group, was delighted with the positive news.
"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 organic growth and expansion.
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.
These included communication with its policyholders and ultimately a High Court application.
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.
