Strategy
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.