Investec has set the date for its demerger as it plans for the spin-off of its asset management business to be completed by mid-March next year.
The South African bank announced last September that it would spin off its UK asset management business and this morning (November 29), the company said the floatation of the business is expected to complete at 7pm on March 13 2020.
The new business will be listed on both the London and Johannesburg stock exchanges.
The Investec Asset Management name will disappear once the demerger completes as the company will be rebranded as Ninety One — chosen to reflect the year Investec launched its asset management business - 1991.
According to Investec, the demerger will improve the positioning of Ninety One as a “truly independent global asset management business” and provides the board with “strategic freedom” to create value for the company over the long-term.
It said the demerger also provided Investec shareholders with a clear and transparent value of Investec Bank and Wealth — Investec’s combined specialist banking and wealth and investment businesses — which will keep a stake in Ninety One after its public listing.
Fani Titi and Hendrik du Toit, joint chief executives, said: "We continue to make good progress with respect to the proposed demerger and listing of Ninety One.
“We remain excited about the benefits of this transaction and are determined to drive simplification across the group, focusing on enhancing the long-term prospects of Ninety One and Investec Bank and Wealth for the benefit of all our stakeholders.
“Our shareholders are set to benefit from the resulting value creation through their direct ownership of two distinct businesses, well-positioned for long-term growth.”
Earlier this year Investec warned of dampened profits, expected due to “challenging market conditions”, and noted the demerger would negatively impact pre-tax earnings for this year.
In those results Investec’s asset management branch fared better than other sections of the group, with assets under management jumping 8.9 per cent to £121.3bn and a higher expected adjusted operating profit than the previous period.
Investec Asset Management runs £118bn of capital on behalf of clients around the world.
imogen.tew@ft.com
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