Old Mutual has announced it will hold onto nearly a fifth of a South African bank as part of its demerger process.
The investment house currently owns 53.3 per cent of Nedbank but will cut this to 19.9 per cent which will “underpin the ongoing commercial relationship” between the companies.
Last year Old Mutual confirmed it would go through a “managed separation” process, splitting itself into four businesses: Old Mutual Emerging Markets, Nedbank, Old Mutual Wealth and US-based OM Asset Management.
This is expected to take place by the end of next year.
The “strategic minority shareholding” in Nedbank will be held by a new company, Old Mutual Limited which will be listed on the London Stock Exchange and the Johannesburg Stock Exchange “at the earliest opportunity” in 2018.
In a statement this morning Old Mutual said: “The decrease in Old Mutual Limited's shareholding in Nedbank Group to 19,9 per cent will be achieved through the distribution of the balance of OML's majority shareholding in Nedbank Group to its shareholders, at an appropriate time and in an orderly manner, post the listing of OML.
“OML does not intend to sell any part of its shareholding in Nedbank Group to a new strategic investor.”
Last year Old Mutual confirmed that as part of the separation, Old Mutual Wealth will be de-merged and listed on both the London and Johannesburg stock exchanges.
damian.fantato@ft.com
