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November 19, 2021

Investec unveils plans to reduce holding in Ninety One

South Africa’s Investec has unveiled plans to reduce its holding in asset manager Ninety One .

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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.

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.”

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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