Old Mutual ditches stake in US arm

Old Mutual ditches stake in US arm

Old Mutual has struck a deal to sell a stake in its US asset management arm as the group continues its radical restructure of the business.

The FTSE 100 firm has announced today (27 March) that it will sell a 25 per cent stake in OM Asset Management for $446m (£355m).

HNA Capital US has agreed to buy the stake in the US asset management firm, which means Old Mutual's shareholding in OMAM will drop to 26 per cent from nearly 51 per cent.  

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Last year, Old Mutual revealed its plan to split the business into four parts.

Bruce Hemphill, group chief executive of Old Mutual, said: "We are very pleased to announce this transaction which brings forward further realisation of value for Old Mutual. 

“It represents another step in delivering our managed separation strategy and secures a strategic long-term investor for OMAM".

OMAM is a global asset management company which oversees around $240bn (£191bn).

James Ritchie, chairman of OM Asset Management’s board of directors, said: "We are pleased to welcome HNA Capital US as a new, supportive investor in OMAM.” 

He said the deal with HNA Capital will help accelerate OMAM’s growth strategy.