business

Old Mutual considering all options under strategic review

March 07, 2016

Millennium Bridge House, the main offices of Old Mutual in Britain, is seen in the City of London, Britain yesterday. – Reuters pic, March 7, 2016.Old Mutual, an Anglo-South African financial services company, said today it was considering all options available to it under the strategic review announced in November.

The company said it had not yet made any decision on the review process, but would give an update on March 11, when it announces preliminary results.

Sky News reported on Saturday that Old Mutual was plotting a £9 billion (RM52.4 billion) break-up that could trigger a takeover battle for the company's various operations.

Old Mutual's shares soared 11.3% to 200 pence by 0811 GMT on the London Stock Exchange, outperforming a 0.07% dip in the FTSE 100.

Old Mutual's Johannesburg-listed shares were up 11.8%.

Sky News said the group was working on a plan to divide itself into four standalone companies comprising its stake in South African lender Nedbank Group Ltd, its UK-focused wealth unit, its South Africa-based emerging markets operation, and its institutional asset management business.

Nedbank said today it was "engaging collaboratively" with Old Mutual as part of the review. Old Mutual has a 54.57% stake in Nedbank, according to Thomson Reuters data.

Old Mutual, which offers fund and wealth management as well as banking and insurance services, posted forecast-beating third-quarter sales in November, boosted by record inflows into its wealth management unit.

The company had also reported strong sales across its Africa and emerging markets operations, with the latter up 22% in local currency terms. – Reuters, March 7, 2016.