Old Mutual to raise up to $268m in sale

 
Michael Bow
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OLD MUTUAL yesterday increased the size of a forthcoming selldown of shares in its US money management, which could net the group $268m.

The UK listed group floated the US unit, Old Mutual Asset Management (OM Asset Management), in New York last October at $14 a share.

Old Mutual said yesterday it would sell 13.3m shares in the group and said it could raise this by a further two million shares.

It had originally planned to sell 11m shares. Shares have been priced at $17.50 in the offering.

This would cut the group’s holding in OM Asset Management to 65.7 per cent, down from its current level of 78 per cent. Bank of America Merrill Lynch, Morgan Stanley, Citigroup, and Credit Suisse are running the order books on the sale.

OM Asset Management has about $224bn of assets under management and is listed on the New York Stock Exchange.

Around 80 per cent of OM Asset Management customers are based in the US and two-thirds of customers – about 62 per cent – are institutional investors. Just five per cent of customers are retail clients.

Shares nudged down 2.26 per cent to $17.50 yesterday after the upsized share offering was announced.

Old Mutual, which is listed on the FTSE 100, said it will use the money “for general corporate purposes”.