Old Mutual Announces Restructure, Wealth Management IPO

Josh O'Neill

30 May 2017

is planning to sell off its wealth management arm through an initial public offering next year, as the split of the firm gathers momentum.

The Anglo-South African financial services group currently has a London listing and is a member of the FTSE 100.

But due to regulatory pressure, it is planning to break itself up into four parts as it is too complex to run in its current form, the group has said.

The firm is aiming to list Old Mutual Wealth as well as its emerging markets division in London and Johannesburg “at the earliest opportunity in 2018 after Old Mutual plc's 2017 full year results,” it said in a statement last week.

The listings are subject to regulatory and other approvals, Old Mutual added.

Meanwhile, a South African holding company named Old Mutual Limited will be established and dual-listed. It will own stakes in Old Mutual Emerging Markets and Nedbank, as well as what remains of the plc.

Old Mutual will spin-off Nedbank by reducing its interest to a remaining “strategic minority shareholding”.

Last December, the firm listed its asset management arm on the New York stock Exchange.