14 August 2009
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.