Strategy

Old Mutual Asset Management Launches Public Offering Of 13 Million Shares

Josh O'Neill Reporter 14 December 2016

Old Mutual Asset Management Launches Public Offering Of 13 Million Shares

Old Mutual said it will continue to reduce its holdings in the asset management business.

Old Mutual Asset Management has launched a public offering of 13 million of its ordinary shares as its parent company seeks to continually reduce its holdings in the division.

The shares are being offered by Old Mutual, through its wholly-owned subsidiary, Old Mutual Group UK. The underwriters also have 30 days to purchase up to an additional 1.95 million ordinary shares at the public offering price, less the underwriting discount.

Earlier this week, Old Mutual Asset Management entered into a repurchase agreement with Old Mutual and Old Mutual Group UK in which Old Mutual Asset Management agreed to buy back 6 million ordinary shares directly from Old Mutual Group UK in a private transaction at the price per share sold to the public by Old Mutual Group UK in the public offering. The transaction is subject to various conditions, including the closing of the public offering, Old Mutual said in a statement.

The proceeds from the proposed offering and repurchase agreement are expected to be used for “general corporate purposes”, Old Mutual said, adding that it intends to continue the reduction of its holdings in Old Mutual Asset Management “in an orderly manner which balances value, cost, time and risk”.

The Bank of America Merrill Lynch, Morgan Stanley, Citigroup, Credit Suisse and Evercore are acting as joint bookrunning managers for the offering.

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