Old Mutual Wealth  

Quilter ponders special dividend with cash from OMGI sale

Quilter ponders special dividend with cash from OMGI sale

Quilter is considering paying a special dividend following the completion of the sale of its £583m single strategy funds business.

The formal completion of the sale of the business to fund manager Richard Buxton and private equity firm TA Associates was announced to the stock market this morning (29 June).

In a stock market announcement Quilter, formerly known as Old Mutual Wealth, said it would consider a special dividend from the surplus sale proceeds, once it has taken into account the repayment of a £300m loan and other costs.

The single strategy funds business will continue to trade under the name Old Mutual Global Investors for now, but Mr Buxton has said a new name would be revealed in due course.

The company will also remain in the same office building as when it was part of the wider Old Mutual Wealth group.

Mr Buxton said he expects the business to "grow substantially" from here.

He said: "As ever, our priority remains running distinctive, genuinely active funds. In my view, volatility is set to make a comeback as central banks end the extraordinary monetary policy experiment of the last decade; we are committed to helping clients navigate this unprecedented market environment."

Of the £583m, £576m is being paid upfront with another £7m to be paid by 2021 subject to performance conditions.

david.thorpe@ft.com