Old Mutual to relist on JSE in June
Old Mutual offices in Sandton, north of Johannesburg. Its emerging markets arm will return to South Africa this year.
The company is expected to list on the JSE in June after being unbundled from Old Mutual Plc.
“When the company was demutualised in 1999, it meant that all of its senior leadership was moved to the UK as well as the primary listing. Now the listing of Old Mutual Limited on the JSE will reverse that and the group will be led by local executives,” Moyo said.
He said the group looked forward to its African homecoming as it signalled its commitment to and vote of confidence in the southern African financial markets.
Old Mutual Limited is also going to be listed in Zimbabwe, Namibia and Malawi and it would continue to focus on the emerging markets in which the company has a significant presence already.
The managed separation announced by Old Mutual chief executive Bruce Hemphill in 2016 entailed breaking down the group into four separate entities to unlock and create value for shareholders.
“We had to get 30 regulatory approvals, including permission from four stock exchanges in different countries. So the process has been long but we are almost there now,” he added.
Old Mutual’s shareholders are expected to vote next week on the unbundling, which is expected to take place on May 25.
Moyo explained that after the unbundling had been completed, shareholders would still own shares in Old Mutual Limited, Quilter (the former Old Mutual Wealth) and Nedbank.
“We expect the stake that Old Mutual has in Nedbank to be reduced to 19.9percent after the unbundling. Currently Old Mutual owns around 53percent of Nedbank.
“For every Old Mutual share, shareholders will get three Nedbank shares after the unbundling, which is expected to happen after six months after the listing of Old Mutual Limited,” he said.
The group is also planning to increase its black economic empowerment (BEE) credentials.
Chief financial officer Casper Troskie said the group wanted to increase BEE ownership to 25percent within three years after listing.
“And within five years we intend to be at least equal to that of its best-empowered peer,” he said.
In South Africa, with the unemployment rate at a staggering 26.7percent, the group said there were no job losses during the process of managed separation.
Overall, OML had high cash generation with net client cash flow (NCCF) of R14.5bn and more than 12million customers.
The group said R500m was to be ring-fenced for a perpetual enterprise supplier development fund.
Old Mutual (Johannesburg) shares closed 0.24 percent higher on the JSE yesterday at R42.09.
– BUSINESS REPORT
Source: iol.co.za
