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'Substantial value' as Old Mutual unbundles majority shareholding in Nedbank

Sep 27 2018 10:25
Fin24

Old Mutual Limited on Wednesday announced the unbundling of its majority shareholding in Nedbank to its shareholders.

Old Mutual Plc’s managed separation strategy involved the creation of the new South African holding company OML. As Old Mutual's African and emerging markets arm, OML listed on the JSE in June this year.

The unbundling of the majority shareholding in Nedbank marks a total distribution to Old Mutual shareholders worth approximately R43.2bn and the completion of Old Mutual Group’s "managed separation".

The distribution of Nedbank shares to shareholders will take place on October 15, 2018. This is in line with the anticipated managed separation timeline.

OML CEO Peter Moyo said "substantial value" was being delivered to shareholders as the Nedbank unbundling, together with the R7.1bn in interim and special dividends being paid out on 16 October, equates to R50bn.

As part of the process, qualifying shareholders will receive approximately 3.2 Nedbank shares for every 100 Old Mutual shares. Shareholders will receive cash in respect of any fractional entitlements that arise as a result of this transaction.

The group currently holds approximately 52% of the issued share capital of Nedbank in its shareholder funds. After the Nedbank unbundling, the group will retain a minority interest of 19.9% of the issued share capital of Nedbank in the shareholder funds of Old Mutual Life Assurance Company (South Africa), a wholly-owned subsidiary of Old Mutual.

"The commercial arrangements by which OML and Nedbank continue to benefit are unaffected by the unbundling process. These arrangements form an integral part of the shareholders agreement between OML and Nedbank that was concluded earlier this year as part of the managed separation process," Old Mutual said in the statement.

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nedbank  |  old mutual  |  banking  |  financial services
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