Local listing on cards when Old Mutual splits up

Old Mutual’s emerging markets unit, with holdings that include Old Mutual South Africa and Mutual & Federal, may be listed on the JSE after the UK insurer breaks up its business.

Johannesburg - Old Mutual’s emerging markets unit, with holdings that include Old Mutual South Africa and Mutual & Federal, may be listed on the JSE after the UK insurer breaks up its business.

“There’s nothing definitive on the listing,” Old Mutual SA chief executive David Macready said yesterday.

Read: In-depth look at the Old Mutual split

“It intuitively makes sense that Old Mutual Emerging Markets will be re-domiciled and listed in South Africa.” After reviewing the insurer’s operations, Bruce Hemphill, the chief executive of London-based Old Mutual, said last month that he planned to split the company to reverse years of flagging returns.

The insurer will spin off its controlling stake in South African lender Nedbank Group to shareholders and separate the US-based asset management business, its UK wealth operations and its emerging markets unit, which includes the South African operations, by the end of 2018.

Old Mutual would continue its “working relationship with Nedbank”, Macready said.

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