Fin24

Investec to break up Evolution - FT

2011-08-05 07:17

London - Investec plc [JSE:INP] would move to break up the stockbroking and wealth management arms of Evolution Group if the South African bank were successful in its bid for the UK stockbroker, the Financial Times (FT) said on Friday.

The newspaper, citing people familiar with the company's thinking, said that Investec, which is also listed in London, is primarily interested in Evolution's private clients operations, Williams de Broe.

Investec is keen to merge Williams de Broe, which reported assets under management of £5.8bn at the end of December, with its own private clients division, which has assets under management of £30bn.

The strategy to increase its UK wealth management exposure would fit with Investec's stated ambition of building up revenues from non-lending activities, the FT said.

On Thursday, Investec confirmed it had made a preliminary approach for Evolution but said that there was no certainty a formal offer would be made for Evolution's investment banking and wealth management operations.