Anglo-South African financial services group Investec expects to raise £189m with the sale of around 10% of equity in its fund management division when it spins-off the unit in March 2020.
Investec, which manages more than £119bn in assets, announced plans for the split last year and said the asset manager would be better able to focus on creating long term value away from Investec's banking and wealth operations.
The new unit will be known as Ninety One and will be listed in both London and Johannesburg.It will be incorporated as Ninety One plc in England and Wales and Ninety One Limited in South Africa.
Shareholders will benefit from direct ownership of two attractive, independent businesses with management teams focused on long-term growth and value creation"
Investec shareholders will hold 55.9% of Ninety One plc and 53.1% of Ninety One Limited.
Investec revealed a share sale plan, whereby 10% of combined total issued share capital of Ninety One plc and Ninety One Limited will be sold by way of a secondary cash placing of Ninety One shares.
Joint Chief Executive Fani Titi said the move was in the interests of shareholders and clients. "Shareholders will benefit from direct ownership of two attractive, independent businesses with management teams focused on long-term growth and value creation," he said.
The proceeds of the share sale will be retained by Investec plc and Investec Limitied and used to strengthen the overall capital position of Investec Bank and Wealth, supporting its growth plans, funding tax liabilities and costs arising as a result.
In a circular to shareholders on Friday, Investec said the expected proceeds are based on its valuation of the Ninety One businesses at 1.89 billion pounds as of October 25 this year. The actual proceeds of the Ninety One share sale will only be determined at the time of the split.
The Investec Asset Management name will disappear once the demerger completes as the company will be rebranded as Ninety One — chosen to reflect the year Investec launched its asset management business - 1991.