Old Mutual plc : SEK 43.60 Offer for Skandia - Old Mutual and Skandia – a powerful combination

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Date: 2 September 2005 PART 1 of 2 SUMMARY 1. Overview of the Offer • Full Offer details made public to allow the Skandia board to make a recommendation • For every 100 Skandia Shares tendered, each Skandia Shareholder receives SEK 1,650 in cash and 137 New Old Mutual Shares (equivalent to SEK 16.5 in cash and 1.372 New Old Mutual Shares per Skandia Share) • Aggregate total consideration approximately SEK 44.9 billion (£3.3 billion), equivalent to SEK 43.60 per Skandia Share • Premium to market price on 12 May 2005 of 25 per cent. • Conditional upon the Skandia Board making public a favourable recommendation of the Offer no later than on 23 September 2005 • Combined market capitalisation of Enlarged Group £7.9 billion (SEK108.7 billion) • Pro forma Embedded Value per share of the Enlarged Group 137 pence • Letters of intent to accept the Offer have been received in respect of in aggregate 159,810,253 Skandia Shares, representing 15.6 per cent. of Skandia's issued share capital, from investors including Cevian Capital and Burdaras • Mix and match facility with cash consideration guarantee for Skandia Shareholders with 1,000 or less Skandia Shares • Skandia Shareholders to represent 26 per cent. of the Enlarged Group • Secondary listing on the Stockholm Stock Exchange