Old Mutual is close to selling its US asset management business, paving the way for an initial public offering (IPO) of its UK wealth management arm.
The group’s board has reportedly endorsed a deal that would see Affiliated Managers Group acquire the US business, OM Asset Management (OMAM).
Old Mutual on Tuesday confirmed “it is continuing to assess the options available to it with regard to the preferred route to effect the managed separation”.
The group also confirmed it has “received approaches from third parties to acquire its stake” in OMAM.
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It said: “There can be no certainty that these approaches will lead to any transaction or any certainty as to the terms on which any such transaction might proceed.”
The Financial Times first reported on Tuesday that the sale of Old Mutual’s 66 per cent stake in OMAM, valued at around $1bn, would be used to pay down debt in its UK operations and would pave the way for a flotation of 10 per cent of its wealth management business, Old Mutual Wealth, in 2017.