Old Mutual has announced plans to reduce stake in its US asset management arm, OM Asset Management, by selling 13 million ordinary shares through a public offering.
The shares will be offered by OM Group (UK), Old Mutual’s wholly-owned subsidiary.
In addition, OMAM also plans to repurchase six million ordinary shares from OM Group (UK).
“The closing of the repurchase transaction is subject to various conditions, including the closing of the public offering,” Old Mutual said.
Old Mutual said that it intends to use the proceeds from the share offering and repurchase for general corporate purposes.
The recent move forms part of the firm’s strategy of managed separation, first announced in March 2016.
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As part of this strategy, Old Mutual plans to split itself into four separate companies- Old Mutual Emerging Markets, Old Mutual Wealth, Nedbank Group and OM Asset Management.
In June 2016, Old Mutual said that it plans to de-merge from Old Mutual Wealth and Old Mutual Emerging Markets, which will be listed on the London and Johannesberg stock exchanges.
It will also conduct a phased reduction of its 66% stake in OM Asset Management.
The managed separation process is expected to be complete by the end of 2018.