R5.5bn sale takes Old Mutual one step closer to separation | Fin24
 
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R5.5bn sale takes Old Mutual one step closer to separation

Mar 27 2017 10:08

Cape Town – Old Mutual has taken another step in dismantling its business structure with the sale of its 25% stake in Old Mutual Asset Management (OMAM) worth $446m (R5.5bn) to HNA Capital US. 

Old Mutual, which has £395bn under management, said the transaction will reduce its shareholding from 50.8% to 25.9%, it said in a company note.

“The transaction comprises a sale of a 9.95% tranche of OMAM shares held by Old Mutual at a price of $15.30 per share and a sale of a further 15% held by Old Mutual at a price of $15.75 per share.” 

READ: Old Mutual shareholders to benefit from second dividend 

Old Mutual said it intends to continue the reduction of its holding in its asset management business in “an orderly manner”. 

Old Mutual is in the process of separating its four businesses – Old Mutual Emerging Markets, Nedbank, Old Mutual Wealth and OMAM – into stand-alone businesses.

Old Mutual CEO Bruce Hemphill said the transaction is another step in delivering a managed separation strategy, which will secure a long-term future for OMAM. 

READ: Old Mutual soars on split speculation

The company said it will use the proceeds from the transaction with HNA Capital – the financial services unit of HNA Group – for general corporate purposes. 

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