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Old Mutual to pay special dividend

Feb 03 2012 14:52 Reuters

Company Data

Old Mutual Plc [JSE : OML]

Last traded R18.74
Change R-0.11
% Change -0.58%
Cumulative volume 8.89m
Market cap R91.29bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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London - Financial services group Old Mutual [JSE:OML] unveiled plans to return £1bn to shareholders via a special dividend, in the wake of last year’s sale of its Nordic business.

Old Mutual said it would use the proceeds of that disposal, which saw the Nordic units sold to mutual insurer Skandia Liv for around 22.5 billion Swedish crowns ($3.34bn), for the special dividend payout.

The remaining £1.1bn from that sale would be used to cut the company’s debt.

Old Mutual, whose businesses range from insurance to banking and asset management, also issued a trading update in which it said it expected another “strong operational performance” in the second half of its 2011 financial year.

However, it would book a £270m goodwill impairment charge due to slower growth at its American division.

Old Mutual’s London-listed shares were up 2.7% in early afternoon trade on Friday, outperforming a 0.5% percent gain in Britain’s benchmark FTSE 100 index.

 
 
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