Old Mutual is a step closer to selling its US business as part of its major restructure plan and could see its wealth management arm floated next year.
According to FTAdviser’s parent publication the Financial Times, the fund house has “endorsed” plans to sell its 66 per cent stake in its US-listed business to the Affiliated Managers Group (AMG).
The UK-based firm would then use the cash from the deal to pay off debt at its British operations, two people familiar with the plans have said.
This comes after Old Mutual announced it was planning to split the business into four parts: Old Mutual Emerging Markets, Nedbank, Old Mutual Wealth and US-based OM Asset Management.
Following the sale of OMAM, valued at about $1bn (£0.7bn), the asset management giant then plans to sell 10 per cent of its UK wealth management business, Old Mutual Wealth, in an initial public offering next year, the FT report revealed.
Its remaining 90 per cent stake in Old Mutual Wealth would then be distributed to the parent company’s shareholders.
In response to media speculation, Old Mutual confirmed it is continuing to assess the options available and “will update the market as and when appropriate”.
A statement published yesterday (24 May) reads: “As a consequence of the decision to proceed with the managed separation of Old Mutual, we expect to receive interest in our assets periodically.”
Old Mutual confirmed it has received approaches from third parties to buy its stake in OMAM.
“There can be no certainty that these approaches will lead to any transaction or any certainty as to the terms on which any such transaction might proceed.”
katherine.denham@ft.com
