Old Mutual Wealth sets Quilter flotation price

Old Mutual Wealth will float on the London Stock Exchange as Quilter with a share price of between £1.25 and £1.55.

The move is the latest in a series of stages in the company’s managed separation from Old Mutual, which will take place later this month.

The publication of the indicative price range follows the publication of Quilter’s Prospectus on 20 April 2018.

With around 1.9bn shares likely to be made available, this could give Quilter a market cap of between £2.37bn and £2.94bn.

Single Strategy
All required regulatory approvals have been received for the disposal of the “single strategy” asset management business, OMGI said.

It said in a statement in its website: “Satisfaction of the remaining conditions precedent and the completion of the OMGI ransaction is progressing in line with plans, and it is possible that completion could occur shortly following admission, with the exact timing of completion not being solely at the company’s discretion.

“The company is currently in discussions regarding the potential pre-completion price adjustments that were included in the sale and purchase agreement (as described in the Prospectus), and whilst these discussions may lead to an adjustment to the overall consideration received, the Directors do not expect any such adjustments to be material to the overall consideration payable to the Company.

OMGI
Quilter is also progressing the process of separating the Multi-Asset Business from OMGI following completion of the OMGI Transaction and continues to expect to incur costs of approximately £20m in respect of the establishment of the standalone Multi-Asset Business, it said.

The company will float on the London Stock Exchange and the Johannesburg Stock Exchange on Monday 25 June, which will also be the date the managed separation from the wider Old Mutual group becomes effective.

Old Mutual’s sale of part of Old Mutual Global Investors, which is subject to a management buy-out led by chief executive Richard Buxton, has been granted regulatory approval for this to go ahead.

Buxton – who has said that his aim is for the business to be a boutique – is buying what has been deemed as the ‘single strategy’ arm of the fund business, as opposed to the multi-asset arm, which will remain with Quilter. Buxton has teamed up with private equity firm TA Associates to buyout the single strategy funds business of Old Mutual.

Quilter has published the Price Range Supplement on the company’s website.

ABOUT THE AUTHOR
Gary Robinson
Head of Video and Ezines at Open Door Media Publishing. Deputy Editor, International Investment. An experienced journalist and filmmaker with more than 20 years' financial services experience, both as journalist and originally as a fully qualified IFA, Gary works across both International Investment and InvestmentEurope titles. Previous video production credits include projects on BBC, C4 and SKY.

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