View more on these topics

Old Mutual Wealth set to float

Feeney-Paul-2013-700x450.jpg

Old Mutual has set out more detail on its plans to carve up the business, with Old Mutual Wealth likely to be separated out through a demerger.

In a statement published this morning, Old Mutual says it has progressed with its stated aim to split the business into four: Old Mutual Wealth, South African lender Nedbank, the South African Old Mutual Emerging Markets business and its US institutional asset management arm Old Mutual Asset Management.

The company says there are a number of different ways it will look to achieve the so-called “managed separation” process.

It says: “The managed separation of a diverse multi-national group is a highly complex matter.  Thus, the initial plans outlined below remain subject to change as a result of factors such as stakeholder consent and/or the readiness of the underlying businesses.

“Equally, we may receive approaches for some or all of our businesses. We will evaluate these carefully and rigorously, balancing the criteria of value, cost, time and risk relative to our broad stakeholder interests.

“Subject to the above considerations we intend to pursue one or more transactions in the context of the managed separation which will ultimately deliver two separate entities, listed on both the London and Johannesburg stock exchanges, into the hands of Old Mutual’s shareholders.”

The Wealth division will float on the London and Johannesburg stock exchanges. A new South African holding company will also be created to house the emerging markets business.

Old Mutual Wealth chief executive Paul Feeney says: “Today’s announcement is a clear endorsement of our vertically integrated strategy and the strength and readiness of our business for the next stage of our corporate journey. “

Old Mutual also plans to close down its London head office as part of the managed separation process. The number of full-time roles has already been cut by 15 per cent, with more job losses to follow.

Recommended

Old Mutual Wealth 2014

Old Mutual faces shareholder rebellion over ‘unusual’ £9m pay deal

Some of the biggest shareholders in Old Mutual are considering voting against a proposed pay deal for the Old Mutual chief executive which would see him paid 1,000 per cent of base salary. The Financial Times reports Bruce Hemphill’ base salary is proposed at £900,000, making the maximum payout £9m under a long-term incentive plan […]

Feeney-Paul-2013-700x450.jpg

Old Mutual Wealth eyes 2017 float as US sale nears

Old Mutual is planning to float its UK wealth division in 2017 as its break-up plan gathers pace. The FT reports the group will sell 10 per cent of Old Mutual Wealth through an IPO, with the remaining 90 per cent distributed to shareholders through listings in London and Johannesburg. US asset management business Old […]

Platform focus: Old Mutual Wealth is at a critical juncture

Old Mutual Wealth has been attracting column inches since South African parent company Old Mutual Group announced it would split into four different businesses by 2018: a South African bank, an African insurer, a US asset manager and a UK-based wealth manager. As the Old Mutual group looks to consciously uncouple from its UK wealth […]

The FCA’s five fixes for retirement information

The Financial Conduct Authority (FCA) has started to change the way that people will be told about their pension options. In a recent market study paper, they lay out their final proposals on the information that should be delivered to people approaching retirement and how it should look and feel. During 2015, there will be […]

Recording sickness absence cover - thumbnail

White paper — recording sickness absence

The latest figures from the Department for Work and Pensions illustrate that sickness absence is still a major cost to businesses, with an annual bill for sick pay and associated costs to employers of £9bn. This paper from Jelf Employee Benefits looks at the importance of recording sickness absence for any employee health strategy and how this can be carried out in an efficient manner to reduce absence, improve employee engagement and drive up profits.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. if the regulators up the anti on vertically regulated businesses it will all fall flat very quickly

  2. One might ask is this a good time to float when all around us in sinking?

    Also a clear idea of the proposition would help. Are they committed to the platform? Are they a fund manager? Are they a Network? If they are committed to platform, why not take chunks out of Cofunds or even take over the whole lot. OM has an excellent transfer system. In theory they could just migrate the assets to their own platform. Cofunds problem solved and the lower price for the assets only (no systems) would probably reflect this.

Leave a comment