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November 29, 2019

Investec to spin-off asset management business next year

Investec is set to spin-off its asset management business on 13 March of next year through a demerger process.

The new unit will be known as Ninety One and will be listed in both London and Johannesburg.

It will be incorporated as Ninety One plc in England and Wales and Ninety One Limited in South Africa.

Investec shareholders will hold 55.9% of Ninety One plc and 53.1% of Ninety One Limited.

By separating the asset management business, Investec seeks to focus on specialist banking, and wealth & investment businesses. The demerger process is expected to drive growth and reduce operating costs.

Alongside, it is expected to enable Ninety One to establish itself as an independent global asset management business. With a separate board, the company is also expected to have strategic freedom and flexibility to run operations as well as tap international talent.

The company first announced its plans to hive-off its asset management arm last year.

Investec joint CEOs Fani Titi and Hendrik du Toit said: “We continue to make good progress with respect to the proposed demerger and listing of Ninety One. We remain excited about the benefits of this transaction and are determined to drive simplification across the group, focusing on enhancing the long-term prospects of Ninety One and Investec Bank and Wealth for the benefit of all our stakeholders.

“Our shareholders are set to benefit from the resulting value creation through their direct ownership of two distinct businesses, well-positioned for long-term growth.”

The completion is subject to shareholder approvals.

Founded in South Africa in 1974, Investec entered the UK in 1992. Currently, it has around £167.2bn of assets under management globally and a staff strength of nearly 10,500.

This year, the company shut down its online investment platform, Click & Invest, due to rising costs.

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