Man Group PLC

August 13, 2009 22:12 ET

Man Group Disposes of Its Remaining Shareholding in MF Global

LONDON, UNITED KINGDOM--(Marketwire - Aug. 13, 2009) - Man Group plc today announces that its wholly-owned subsidiary, Man Group UK Ltd, has entered into a Variable Forward Sale ("VFS") Agreement with Nomura International plc ("Nomura") over its entire remaining stake in MF Global Ltd. ("MF Global").

The transaction is the final step in Man Group's complete disposal of MF Global shares following its IPO in July 2007. From an accounting perspective, de-recognition of the MF Global shareholding occurs immediately. Nomura has executed its initial hedging sales under the VFS Agreement at a sale price of $5.95 per share. The VFS Agreement guarantees that Man Group will achieve a minimum of $5.355 per share (90% of the Nomura's initial hedging sales price), while retaining a capped participation in future share price appreciation over a three to four year period. The structure provides Man Group with gross initial disposal proceeds of $112 million, which it expects to receive early next week.

Man Group's regulatory capital surplus will increase by roughly $90 million as a result of this transaction.

MF Global will receive no proceeds from the VFS transaction.

Nomura's hedging sales of the common shares under the VFS Agreement are being made pursuant to an effective registration statement on Form S-3 that was previously filed by MF Global with the U.S. Securities and Exchange Commission. Nomura's initial hedging sales have been made to a limited number of Investors. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of MF Global's common shares, nor shall there be any sale of MF Global's common shares in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Copies of the prospectus supplement relating to this transaction, when available, may be obtained by contacting: Nomura Securities International, Inc. on +1 212 667 9434.

About Man Group

Man is a world-leading alternative investment management business. With a broad range of funds for institutional and private investors globally, it is known for its performance, innovative product design and investor service. Man's funds under management at 30 June 2009 were $43.3 billion.

The original business was founded in 1783. Today, Man Group plc is listed on the London Stock Exchange and is a member of the FTSE 100 Index with a market capitalisation of around Pounds Sterling 4 billion.

Man Group is a member of the Dow Jones Sustainability World Index and the FTSE4Good Index. Man also supports many awards, charities and initiatives around the world, including sponsorship of the Man Booker literary prizes. Further information can be found at www.mangroupplc.com.

Contact Information

  • Man Group plc
    Robert Clow
    Senior Communications Officer
    +44 20 7144 3886
    robert.clow@mangroupplc.com
    www.mangroupplc.com
    or
    Merlin PR
    Paul Downes
    +44 20 7653 6620
    or
    Merlin PR
    Paul Farrow
    +44 20 7653 6620
    or
    Merlin PR
    Toby Bates
    +44 20 7653 6620
    or
    Walek Associates
    Stefan Prelog
    +1 212 590 0523