Old Mutual Asset Management has launched a public offering of 13 million ordinary shares to raise capital for “general corporate purposes”.
The shares are being offered by Old Mutual through its wholly owned subsidiary OM Group UK Limited.
According to a statement from Old Mutual on the London Stock Exchange, the underwriters also have a 30-day option to purchase up to an additional 1.95 million ordinary shares at the public offering price, less the underwriting discount.
Listed on the New York Stock Exchange, Old Mutual Asset Management’s share price stood at US$15.27 (£12.05) this morning (13 December).
Parent company Old Mutual’s London listed shares were at £1.91 as of 8.30am this morning (13 December).
In addition, yesterday (12 December 2016), OMAM entered into a repurchase agreement with Old Mutual and OM Group (UK) Limited.
This saw OMAM agree to repurchase six million ordinary shares directly from OM Group (UK) Limited in a private transaction at the price per ordinary share sold to the public by OM Group (UK) Limited in the public offering.
The closing of this repurchase transaction is subject to various conditions, including the closing of the public offering.
The proceeds to Old Mutual from the proposed offering and repurchase agreement are expected to be used for general corporate purposes, according to the London Stock Exchange announcement.
Old Mutual intends to continue the reduction of its holdings in OMAM in an orderly manner, which balances value, cost, time, and risk, the statement added.