Old Mutual to list wealth management arm in London and sell down Nedbank holding as part of four-way split

 
Oliver Gill
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Old Mutual is to spin off its wealth management arm with a separate London listing next year, as the break-up of the firm gathers pace.

The South African insurance giant currently has a London listing and is a member of the FTSE 100.

But under the weight of regulatory change, the group is planning to break into four parts.

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Today, the firm said one of the four new divisions, Old Mutual Wealth, will be listed in London and Johannesburg "at the earliest opportunity in 2018 after Old Mutual plc's 2017 full year results".

Simultaneously, a South African holding company called Old Mutual Limited will be set up and similarly dual-listed. It will own stakes in Old Mutual Emerging Markets and Nedbank as well as what is left of the plc.

Subsequently Old Mutual Limited will spin-off Nedbank by reducing its interest to a remaining "strategic minority shareholding".

Last December, Old Mutual listed its fourth main division, the firm's asset management arm, on the New York Stock Exchange.

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Old Mutual chief executive Bruce Hemphill said: "We are very pleased with the progress we have made since announcing managed separation.

We have said we would create four independent businesses, and with the recently announced transactions in respect of Old Mutual Asset Management, that business is now independent.

"We are aiming to complete the two listings that will materially deliver the managed separation at the earliest opportunity in 2018 after our full year results, subject to regulatory and other approvals."

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