South Africa’s Old Mutual said its shareholders would get about $3.52bn (50bn rand) from the spin-off of a majority stake in Nedbank and dividends.
Old Mutual is unbundling most of its Nedbank shares to investors as part of a broader “managed separation” process.
The break-up of the group is partly premised on the belief that each unit will be much more highly valued if it is a separate entity.
Shareholders will receive 43.2bn rand from the spin-off and 7.1bn rand in interim and special dividends that will be paid on Oct. 16, the company said.
Old Mutual will distribute 158.7 million Nedbank shares to its shareholders, who will receive approximately 3.2 Nedbank shares for every 100 Old Mutual shares they own.
“The commercial arrangements by which OML and Nedbank continue to benefit are unaffected by the unbundling process. These arrangements form an integral part of the shareholders agreement between OML and Nedbank that was concluded earlier this year as part of the managed separation process,” Old Mutual said in the statement.
Old Mutual, which houses the core emerging-market businesses, listed on the JSE in June, as part of the managed separation process. The emerging-market segment has insurance and asset-management businesses, predominantly in Africa, under its wing.
Old Mutual’s wealth business, Quilter, listed in London, with its secondary inward listing on the JSE, in June. Quilter provides investment advice and investment platforms to about 900,000 customers.