After the sale, the minority stake in Nedbank will be held by Old Mutual’s new South African holding company Old Mutual Limited (OML), the insurer announced Wednesday.
OML will have a primary listing on the Johannesburg Stock Exchange and a secondary listing on the London Stock Exchange next year after its parent company (Old Mutual) posts its 2017 results.
Old Mutual majority stake will be sold to its shareholders, no part of the existing shareholding in Nedbank will be sold to a new strategic investor.
“Nedbank Group shareholders will be kept appropriately informed of further developments regarding the managed separation,” the insurer said.
Old Mutual break up
In March 2016, Old Mutual announced it will split its business into four separate units by the end of 2018, in a move the insurer claims will help it perform better.
Under the cost-cutting exercise, Old Mutual has cut stakes in US-based Old Mutual Asset Management and UK wealth manager Old Mutual Wealth.
Additionally, in September 2017, the company announced plans to split its multi-asset arm and its single strategy Old Mutual Global Investors (OMGI) business into two separate entities.
For the year end 31 December 2016, Old Mutual reported an adjusted operating profit before tax of £1.7bn ($2.2bn, €1.9bn) and had £395bn of funds under management.