Old Mutual, the Anglo/South African financial services group that has spent much of the past 18 months drip-feeding details to the international market about its “managed separation” plans, today said it will retain a 19.9% “strategic minority shareholding” in Nedbank Group after the break-up.
The stake is to be retained by the new South African holding company that is to be formed after the separation takes place, in order to “underpin the ongoing commercial relationship between the companies”, Old Mutual said, in a statement.
That holding company will be named Old Mutual Limited (OML), according to Old Mutual, and will have a primary listing on the Johannesburg Stock Exchange as well as a secondary listing on the London Stock Exchange.
“OML will be listed on both exchanges at the earliest opportunity in 2018, following the publication of Old Mutual plc’s 2017 full-year results announcement,” Old Mutual added.
“As previously announced, the decrease in OML’s shareholding in Nedbank Group to 19.9% will be achieved through the distribution of the balance of OML’s majority shareholding in Nedbank Group to its shareholders, at an appropriate time and in an orderly manner, post the listing of OML.
“OML does not intend to sell any part of its shareholding in Nedbank Group to a new strategic investor.”
As reported, Old Mutual announced its plans to undertake a “managed separation” in March of 2016, in what group chief executive Bruce Hemphill described at the time as a way to “unlock value currently trapped within the group structure”.
The break-up would be completed by 2018, the company said in announcing its plans, and the newly-formed companies would be Old Mutual Emerging Markets, Old Mutual Wealth, Nedbank and OM Asset Management.
The plan to create a new South African holding company called Old Mutual Limited to hold the Nedbank Group stake after the separation was announced in May.
Nedbank was founded in 1888 and is based in Johannesburg.