OMW denies shelving IPO over platform costs

Added 22nd September 2016

Old Mutual Wealth has denied reports that it is looking at cancelling its planning listing on the London Stock Exchange due to runaway costs of upgrading the technology behind its platforms.

OMW denies shelving IPO over platform costs

Earlier this week, Bloomberg reported that the cost of moving Old Mutual Wealth’s platform to technology provided by IFDS meant the insurance giant was considering selling the business rather than pursing an initial public offering.

According to financial statements, published in March, Old Mutual has so far spent £450m on the technology upgrade.

Still on track

However, the insurance behemoth confirmed with International Adviser on Thursday that its wealth division remains on track to be listed as a stand-alone business following the insurer’s announcement in March that it will break up its business into four separate units as it believes they will perform better independently.

“As announced in June 2016, as part of the managed separation, Old Mutual’s intention is to deliver Old Mutual Wealth into the hands of its shareholders by way of a demerger and listing on both the London and Johannesburg stock exchanges.

“No announcement to the contrary has been made,” said Old Mutual in statement.

The four units, due to be separated by 2018, will be South African bank Nedbank; UK wealth manager Old Mutual Wealth; OM Asset Management, a US asset manager; and Old Mutual Emerging Markets, its life assurance, investment and lending operation which spans Asia, Africa, and Latin America.

Old Mutual added that it will give an update on the business on 11 October.

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About Author

Monira Matin

Senior Reporter

Monira joined International Adviser in March 2016 from Informa Global Markets where she worked as a eurobond reporter for over two years, covering fixed income markets. She has previously held a number of editorial positions covering politics, insurance and technology. Monira has a degree in Journalism and Economics from City University.



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