Amicus June 2017

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2017/05/02 10:23 AM
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BUSINESS HIGHLIGHTS
MANAGED SEPARATION
MANAGED SEPARATION UPDATE BY BRUCE HEMPHILL
A New Dawn
'We are very pleased with the progress of our
managed separation strategy announced on 11
March 2016,' said Bruce Hemphill, Group CEO, Old Mutual.
'We expected the managed separation to be complete by the end
of 2018. Just 15 months in we’ve built great momentum and now
anticipate the two listings taking place at the earliest opportunity
in 2018, following our 2017 full year results.
As a reminder, we will create four independent businesses:
Old Mutual Emerging Markets (OMEM), Old Mutual Wealth
(OMW), Nedbank and OM Asset Management (OMAM).
Through the separation of our businesses, we are seeking to
unlock significant value for our shareholders. We have taken a
number of significant steps:
1. We have reduced our shareholding in OMAM to 22.4%.
On completion of all transactions we will have realised gross
proceeds, since December 2016, of over a billion US dollars
with respect to OMAM, reducing our stake to under 8%. This
will deliver independence to the first of our four businesses.
2. On 27 April 2017, we announced that we would sell our
26% stake in Kotak Mahindra Old Mutual Life Insurance
Limited to our joint venture partner, Kotak Mahindra Bank
Limited. The gross consideration for the transaction was INR
12,927 million (£156 million equivalent based on the spot
exchange rate on the day of announcement).
Going forward it is our intention to create two separate entities
listed on both the London and Johannesburg stock exchanges:
1. One will be OMW, likely to take place through
a demerger with the possibility of a small initial public
offering (IPO).
2. The second will be a new South African holding company
called ‘Old Mutual Limited’. Initially it will comprise OMEM,
the Group’s Nedbank shareholding and Old Mutual plc,
which will become a subsidiary of Old Mutual Limited. The
distribution of a significant proportion of the shareholding
in Nedbank from Old Mutual Limited would follow in due
course. Old Mutual Limited will retain an appropriate strategic
minority shareholding in Nedbank to underpin the ongoing
commercial relationship.'
Corporate
launches new
E-Learning
Site
Old Mutual
Corporate has
created a new
E-Learning site to
encourage members to take control of their finances, whether
it’s planning for a wedding, short-term insurance for your car
or house, sorting out your will or saving for retirement. The
interactive site also features some great member stories and
video clips and access to advice. The four modules currently
available are Short-Term Insurance, Wills & Estate Planning,
Financial Planning and Retirement Planning.
Old Mutual maintains Level 2
B-BBEE status
Old Mutual has retained its Level 2 B-BBEE status for the 8th
year in a row. We've made some great improvements in terms
of skills development and employment equity and are carefully
monitoring progress at a middle, senior management and board
level. We're also gearing up to move beyond just compliance in
terms of the revised Financial Sector Code, which will be passed
later this year.
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2017/05/30 12:15 PM