South Africa’s Investec has unveiled plans to reduce its holding in asset manager Ninety One.
The move comes as the company announced a 30.5% increase in half yearly revenues.
Investec plans to distribute 15% of its holdings in Ninety One to shareholders. It will continue to hold 10% in the asset manager following the offload.
Notably, Ninety One and Investec completed their demerger last year. Subsequently, Investec continued to own a 25% stake in the business.
At the same time, a plan to divest a 10% stake in Ninety One was abandoned due to the Covid-19 outbreak.
The Investec statement noted that the distribution of the stake is subject to regulatory, shareholder and other approvals.
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The company will announce the distribution terms and process in due course.
Investec has reported a more than two-fold rise in profits in the half-year period to 30 September 2021.
The company’s adjusted earnings per share jumped 134.8% to 26.3 pence from 11.2 pence recorded in the same period a year ago.
Wealth and Investment funds under management (FUM) also increased to £63bn, up 8.6%.
The increase was attributed to net inflows of £1.5bn, improvement in market conditions and good investment performance
Investec Group CEO Fani Titi said: “The group delivered a strong first half result, underpinned by resilient client franchises, strong revenue momentum and sound asset quality – resulting in adjusted earnings per share of 26.3p, ahead of comparable pre-Covid levels.
“I am pleased to share that the Board has proposed an interim dividend of 11.0p relative to 5.5p in 1H2021.
“Further, in line with our strategy to optimise the allocation of capital, the Board has resolved to distribute a 15% holding in Ninety One to our shareholders.”