LONDON Oct 12 Anglo-South African financial
services firm Old Mutual's planned demerger and listing
of its UK asset management unit could also include the sale of
equity through an initial public offering, an Old Mutual
spokesman said on Wednesday.
Old Mutual is planning to break itself up into its four main
businesses, with a target date for completion of end-2018.
"We may potentially have an IPO element for Old Mutual
Wealth, but... the listing will be primarily via a demerger," an
Old Mutual spokesman said by email, confirming comments he said
were made at a capital markets day this week.
A demerger via a listing offers shares to existing
shareholders, while an IPO is a share offering on the open
Old Mutual has said it plans to cut its stakes in its U.S.
business OM Asset Management and South African bank
Nedbank and aims to dual-list its UK asset management
and emerging markets businesses in London and Johannesburg.
It said it was also open to approaches to sell its
businesses. Analysts value Old Mutual Wealth at 3-4 billion
pounds ($8.70 billion).
Old Mutual Wealth posted a sharp drop in third-quarter
client inflows on Tuesday and said markets would remain
difficult following Britain's vote to leave the European Union.
($1 = 0.8042 pounds)
(Reporting by Carolyn Cohn; editing by Simon Jessop)