Assupol Life Demutualisation
Approved

'More than 400 million FREE shares in your hands'

Frequently asked questions

Question: What is a demutualisation?
Answer: A demutualisation is a conversion of a mutual society owned by its members into a public company owned by its shareholders. The members of the mutual society surrender their membership rights and receive shares in exchange for their membership rights, thereby becoming shareholders of the company or its holding company.
Question: How will Assupol Life change after the demutualisation?
Answer: Assupol Life will remain the same, but will continue to exist in the form of a public company called Assupol Life Limited. All members will surrender their membership rights in Assupol Life and qualifying members will receive free shares in Assupol Holdings Limited as shareholders. Assupol Holdings Limited owns Assupol Life.
Question: Will the demutualisation affect my policies?
Answer: No, your policies and policy benefits will not be affected.
Question: Who are qualifying members?
Answer: A qualifying member is a person who is a member of Assupol Life at 30 September 2010 and who has a valid in force qualifying policy with Assupol Life at 30 September 2010. Qualifying members will be entitled to the allocation of free shares. Persons who conclude policies with Assupol Life after 30 September 2010, or whose policies only become effective after 30 September 2010 will not receive any free shares in respect of such new policies.
Question: What is a qualifying policy?
Answer: A qualifying policy is any long-term insurance policy entered into between you and Assupol Life for which you have paid your first premium and the premium has actually been received by Assupol Life.
Question: Which policies do not qualify as qualifying policies?
Answer: The following do not qualify as qualifying policies: i) Group scheme policies; and/or ii) Policies administered and/or marketed by Isambulela, excluding policies sold through the Assupol Life Direct Marketing Call Centre; and/or iii) Policies marketed by Cornerstone; and/or iv) Policies for which the first premium was actually received by Assupol Life, but which first premium is reclaimed or repayable to the policyholder after the cut off date; and/or v) Policies in terms whereof no further cover is granted and all benefits have become due and payable on any date 90 days prior to 30 September 2010, and which remains unclaimed in accordance with the terms of the policy or unpaid due to the failure by the policyholder to provide all particulars requested by Assupol Life to enable it to effect payment, as at or prior to 30 September 2010.
Question: If I am a qualifying member, how many free shares will be issued to me and what is my shares worth?
Answer: The number of shares will be calculated using a formula as set out in the share allocation rules which forms part of the scheme document. The estimated value of the free shares as at the approval of the demutualisation could be between R1.25 and R1.55 per share but this is not guaranteed. These values may thereafter fluctuate over short periods of time due to prevailing market conditions and various other factors, such as the possible listing of Assupol Holdings Limited on the exchange operated by the JSE Limited.
Question: How will the free shares be issued to me?
Answer: Initially the free shares will be in the form of preference shares held on your behalf by a nominee company. You may, within no later than 6 months before the conversion date, request the Assupol Members' Trust to deal with your free shares or converted free shares by either selling the shares on your behalf, if the shares are listed on the JSE Limited, or transferring the shares into your own name.
Question: What must I do?
Answer: Confirm your personal particulars by contacting the Assupol Life demutualisation call centre on 0861 84 84 44 or by visiting any of the Assupol Life branch offices or the Assupol Life head office and completing a members' personal particulars confirmation form. Please click on the Confirmation form link to download this document. This will enable Assupol Life to determine if you are a qualifying member entitled to free shares. If you do not confirm your particulars within 5 years after the last day of the month in which the demutualisation is finally approved, you will lose and forfeit all your rights and entitlements in terms of the demutualisation scheme, and the shares will be transferred to a charitable trust. Ensure that you obtain more information about the demutualisation available on this website and follow the easy steps.
Question: What is a preference share?
Answer: It is a type of share allocated to you, which will initially grant limited voting rights to you. The preference shares may be redeemed, in other words exchanged for cash at the election of Assupol Holdings Limited, unless you give an instruction to the Assupol Members' Trust within 30 days after the last day of the month in which the demutualisation is finally approved not to redeem the preference shares. In terms of the scheme you will not be able to trade preference shares until it has been converted into ordinary shares if not redeemed.
Question: What does redeem mean?
Answer: Redemption of shares means that the shares are exchanged for cash by Assupol Holdings. Assupol Holdings Limited may exchange your free shares for cash, and you will receive the cash amount for those shares. If your shares are redeemed, you will no longer be a shareholder but will receive cash from Assupol Holdings Limited for your free shares. You may inform the Assupol Members' Trust to instruct Assupol Holdings Limited not to exchange your free shares for cash if you want to keep your shares as a shareholder. You must give this instruction within 30 days after the last day of the month in which the demutualisation is finally approved. Click on the link Do not redeem my free shares to download the instruction form which you must complete if you want to keep your free shares. Only qualifying members can complete this form.
Question: What is the conversion date?
Answer: The conversion date is the date on which all preference shares that have not been redeemed, automatically converts into an equal number of ordinary shares. This will happen on the earlier of 24 months after the last day of the month in which the demutualisation is finally approved or the listing of Assupol Holdings Limited on the exchange operated by the JSE Limited.
Question: What can I do with my free shares?
Answer: If your shares are not redeemed for cash, you may request the Assupol Members Trust to either transfer the shares into your own name to be kept as an investment as a shareholder of Assupol Holdings Limited, or sell the shares on your behalf for cash if the shares are listed on the JSE Limited. If you do not give any request to the Assupol Members' Trust, the shares will be transferred to the nominee company and kept on your behalf until you give your request.
Question: How can I get my free shares?
Answer: You must confirm your particulars and await an SMS notification (or such other method of communication as indicated by you) confirming that you are a qualifying member. Only qualifying members are entitled to free shares. You must within no later than 6 months before the conversion date request the Assupol Members' Trust how to deal with your free shares. See What can I do with my free shares. You will receive an instruction to confirm your bank details before any payments are made to you in terms of the scheme, if at any stage you elected to sell your shares or if your free shares are redeemed for cash. If you do not confirm your bank details within 1 month after being requested to do so the money will be transferred to an interest bearing account and after 3 years you will forfeit any rights or entitlement you had in respect of such amounts. Click on the My Guide to the Demutualisation of Assupol Life button for more information.
Question: Can I dispute the share allocation made to me?
Answer: Yes, direct your dispute in writing to Assupol Life and after demutualisation to Assupol Holdings Limited. You only have 12 months after the last day of the month in which the demutualisation is finally approved to lodge a dispute. If you do not lodge a complaint during this period, you will no longer be able to dispute your allocation. Please direct such disputes in writing to PO Box 35900, Menlo Park, 0102 for the attention of the Demutualisation Complaints Committee or per email to dcomplaints@assupol.co.za, or per fax to 012 366 3511.
Question: Will the holding company of the converted Assupol Life Limited be listed on the JSE Limited?
Answer: Yes, it is the intention that Assupol Holdings Limited be listed on the exchange operated by the JSE Limited following the approval of the demutualisation. This will enable you, if your free shares have not been redeemed, to trade your free shares on the JSE Limited as a shareholder of Assupol Holdings Limited.
Question: What are the roadshows and when will they take place?
Answer: The roadshows will take place throughout South Africa to inform members about the demutualisation and to afford members the opportunity to ask questions about the demutualisation. Click on the Roadshow button for more information and for details about the roadshows.
Question: What happens after demutualisation?
Answer: Click on My Guide to the Demutualisation of Assupol Life button for more information.
Question: Demutualisation process explained
Chart explaining the process
Question: Who will review the demutualisation process to ensure that policyholders' interests are protected?
Answer: Assupol Life has submitted a formal notification to the Registrar of Long-term Insurance of its intention to demutualise as it is required to do in terms of the Long-term Insurance Act. The statutory actuary and an independent actuary appointed by the Registrar of Long-term Insurance reviewed the demutualisation scheme and issued favourable reports. These reports can be reviewed during the inspection period. See Can I inspect the scheme documents. The High Court of South Africa, North Gauteng and the Competition Authorities have to approve the demutualisation scheme. Please refer to the question When will the demutualisation be approved.
Question: When will the demutualisation be approved?
Answer: Assupol Life intends to apply to the High Court of South Africa, North Gauteng to approve the demutualisation and the demutualisation scheme is currently being reviewed by the Competition Authorities. The High Court of South Africa, North Gauteng, will consider the demutualisation on the 9th of December 2010 at 10:00am, or as soon as possible thereafter as the application can be heard. Any policyholder, shareholder or creditor may appear and be heard at the court application.
Question: Can I inspect the scheme documents?
Answer: Yes. You may inspect documents relating to the demutualisation at www.assupol.co.za; or by visiting any Assupol Life branch office during business hours or the Assupol Life head office from 8 November 2010 until 23 November 2010. Any interested party may make representations to the Registrar of Long-term Insurance that are relevant to its interests.
Question: What must I do if I have a complaint about the demutualisation?
Answer: If you have a complaint about your share allocation, please see Can I dispute the share allocation made to me? For any other complaints, please direct your complaints to Assupol Life at dcomplaints@assupol.co.za and to the Financial Services Board by posting your complaint to PO Box 35655, Menlo Park, 0102 or by sending an email to assupolcomplaints@fsb.co.za. The Registrar of Long-term Insurance and the Financial Services Board's details are available at www.fsb.co.za. Please note that neither the FAIS Ombud nor the Long-term Insurance Ombudsman will be able to assist you with any questions or complaints you may have about the demutualisation of Assupol Life.

back to top