Old Mutual will unbundle its majority shareholding in Nedbank on October 15, the firm announced in a statement this morning.
The group currently holds approximately 52 per cent of Nedbank, and it plans to lower its stake to a 19.9 per cent minority interest once unbundling is completed.
Old Mutual plc, the parent company of Quilter, formally Old Mutual Wealth, which has also split from the group, remains listed on the Johannesburg Securities Exchange.
Shareholders will receive 3.21176 Nedbank shares for every 100 Old Mutual shares they hold. The total value of distribution will be 43.2bn rands (£2.3bn) based on the price of Nedbank’s shares on Johannesburg’s exchange.
Nedbank’s unbundling is the final step of Old Mutual’s “managed separation” announced in 2016.
The Old Mutual board says it believes that the division allows investors to participate in “substantially different investment cases”, “provides a substantial return of capital to Old Mutual shareholders” and “supports the efficient allocation of capital and underpins mutually beneficial arm’s length commercial arrangements.”