eBusiness Weekly
Business Writer
Insurer Old Mutual said on Thursday that it would explore all reasonable options to end a dispute with its fired boss Peter Moyo, after a court ruled last month that he should be reinstated.
In an open letter to shareholders, Old Mutual said: “The ongoing appeal processes and related litigation have, however, in certain respects been overtaken by events.”
“It will remain important to finally resolve the dispute about the validity of the June notice of termination. However, irrespective of what might eventually happen in those legal proceedings, events following the June notice have made it clear that a continued employment relationship between Mr Moyo and Old Mutual is untenable,” the insurer’s board of directors said in a letter to shareholders.
“For this reason, Old Mutual has now given Mr Moyo a further notice terminating his employment for the second time.”
Meanwhile, the group’s results from Operations (RFO) is expected to be between a decrease by 1 percent and an increase of 4 percent compared to the comparative period. Adjusted Headline Earnings (AHE) is expected to increase by approximately 6 percent to 12 percent mainly driven by higher shareholder investment return in South Africa.
Accordingly, AHE per share is expected to increase by approximately 7 percent to 13 percent to 106 -111 cents in the current period compared to 98,9 cents for the comparative period. The group expect basic earnings per share to decrease by approximately 53 percent to 55 percent to 123,5-129,8 cents compared to 277,2 cents in the comparative period.
Headline Earnings (HE) is expected to decrease by approximately 33 percent to 36 percent. We expect Headline Earnings per share (HEPS) to decrease by approximately 31 percent to 35 percent to 124,3-130,7 cents compared to 190,6 cents in the comparative period, said Old Mutual.
