Old Mutual Plc returned to its roots today when it listed its $11 billion African financial services business in Johannesburg, a move which largely completes a major overhaul of the company.
The group also simultaneously listed on three regional exchanges to complete the return to its African roots.
The 173-year old group has been disentangling its conglomerate structure created after a series of acquisitions since it moved its headquarters and primary listing to London in 1999.
Chief executive Bruce Hemphill set the break-up in motion in 2016, saying the company’s four main businesses — a U.S. asset manager, a British wealth manager, an African financial services division and a South African bank — would achieve higher investor ratings as separate entities.
The financial conglomerate broke into four independent businesses namely Old Mutual Emerging markets (OMEM), NedBank Group, Old Mutual Wealth (OMW) and Old Mutual Asset Management as part of a strategy to unlock and create significant long-term value as well as removing the significant costs arising from the previous structure.
Old Mutual Plc’s African financial services business, Old Mutual Ltd, listed roughly 5 billion shares today. They traded at 29.39 rand each during the session, valuing the company at roughly 145 billion rand ($10.7 billion).
Old Mutual Ltd, now the parent to what is left of Old Mutual plc, has a standard listing in London, and secondary listings on the stock exchanges of Malawi, Namibia, and Zimbabwe.
It is expected that Old Mutual plc shares will be delisted from the Johannesburg Stock Exchange, the Namibian Stock Exchange, the Zimbabwe Stock Exchange and the Malawi Stock Exchange on 29 June 2018.
The company also had its secondary listing in Zimbabwe — where it opened its first office 120 years ago — at an event officiated by the Finance Minister Patrick Chinamasa.
Secondary listings on the Namibian Stock Exchange and the Malawi Stock were expected also today.
Hundreds of Old Mutual Ltd’s employees, blowing green vuzuzelas and beating drums, danced through the streets of Johannesburg ahead of the listing.
“What’s most exciting about our listing as an independent, standalone entity is that it enables us to unlock shareholder value and create a business with a strong strategic focus on sub-Saharan Africa,” Old Mutual Ltd’s chief executive Peter Moyo said.
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