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.