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Cape Town - Old Mutual Asset Management (OMAM) completed the first tranche of a two-step sale of its shares to HNA Capital US, it announced on Monday.
“The first tranche consisted of 9.95% of OMAM shares at a price of $15.30 per share in cash, resulting in gross proceeds of approximately $175m (R2.3bn),” the company said in a statement.
The second tranche consists of 15% of OMAM shares, to be sold at a price of $15.75 per share.
“Completion of this tranche is subject to receipt of certain additional regulatory approvals in
various jurisdictions and is expected to take place in the second half of 2017,” it said.
Following the completion of the first tranche, OMAM is no longer a “controlled company” within the meaning of the New York Stock Exchange Listed Company Manual, it said on Friday in a statement.
As a result of the transaction, OMAM CEO Peter Bain has been appointed directly by OMAM’s board and accordingly is no longer an appointee of Old Mutual.
“The closing of this first tranche recognises a major step in our separation from Old Mutual and we look forward to taking the business to the next level as an independent company,” OMAM chairperson said James J. Ritchie.
OMAM is a global, multi-boutique asset management company with $249.7bn (R3.3trn) of assets under management.
Four businesses - Old Mutual Emerging Markets, Nedbank, Old Mutual Wealth and OMAM – are undergoing a separation process that will involve ongoing regulatory and stakeholder engagement.
“The group has a range of options available to it and the feasibility, sequencing and timing of each element will be affected by a mixture of market, regulatory and other factors,” the group explains on its website.
“We expect that the managed separation will be materially completed by the end of 2018 and will update the market periodically on our progress.”
