Old Mutual break-up gathers pace

Added 24th May 2016

The break-up of Old Mutual is picking up pace with the company close to a deal to sell the United States part, Old Mutual Asset Management, according to reports.

Old Mutual break-up gathers pace

It was also reported by the Financial Times that a partial IPO of the United Kingdom-based wealth management business Old Mutual Wealth is on the cards. The report said 10% of the business is expected to be offered up to investors next year. 

The sprawling financial services group announced a plan in March to realise more value for shareholders by separating into four pieces. CEO Bruce Hemphill said the break-up would allow the four parts to "reach their full potential."

Old Mutual Wealth recently appointed a chief operating officer, Steven Braudo.

Old Mutual released a statement to the stock exchange this morning confirming it is “continuing to assess the options available to it with regard to the preferred route to effect the managed separation announced on 11 March 2016.”

The company also said that it has received “approaches from third parties” to acquire its stake in OMAM but stopped short of confirming reports a deal with one particular buyer was close.

There was no reference made in the Old Mutual statement to the report of an IPO of Old Mutual Wealth being planned and a spokesperson declined to comment further.

Old Mutual is listed in both London and Johannesburg. Shares in the company were up 2% this morning on the news at 170.5p for a market cap of £8.4bn.

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Alex Sebastian

News editor

Alex joined Portfolio Adviser in April 2014 and has been a financial journalist since 2008. He has previously held editorial positions at the Financial Times Group and Euromoney Institutional Investor. Alex is NCTJ qualified and has a degree in economics from the University of Sussex.



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