Old Mutual has announced plans to demerge its wealth arm and list it on the London stock exchange.
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The group has also unveiled plans to create a new South African holding company for its emerging markets operations.
"We intend to pursue one or more transactions in the context of the managed separation which will ultimately deliver two separate entities, listed on both the London and Johannesburg stock exchanges, into the hands of Old Mutual’s shareholders," Old Mutual said.
Old Mutual Wealth CEO Paul Feeney said: "Today’s announcement is a clear endorsement of our vertically integrated strategy and the strength and readiness of our business for the next stage of our corporate journey."
The move forms part of Old Mutual’s strategy to split its business into four entities- Old Mutual Wealth, South African lender Nedbank, the South African Old Mutual Emerging Markets business and US institutional asset management unit Old Mutual Asset Management.
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By GlobalDataThe company said that it will seek to achieve the managed separation through multiple ways, as the process is highly complex.
"Thus, the initial plans outlined below remain subject to change as a result of factors such as stakeholder consent and/or the readiness of the underlying businesses. Equally, we may receive approaches for some or all of our businesses. We will evaluate these carefully and rigorously, balancing the criteria of value, cost, time and risk relative to our broad stakeholder interests," the company said.
The group has also announced plans to spin off a significant portion of its stake in Nedbank to investors, and continue the phased reduction of its 65.8% stake in Old Mutual Asset Management.
As part of the managed separation process, the group also plans to shut down its London head office, where jobs have already been shed by 15%. More layoffs are expected as the managed separation continues.
The managed separation is expected to be materially complete by the end of 2018, the company said.
