JOHANNESBURG – Old Mutual will cut its stake in Nedbank from 54% to 19% in the end stages of its managed separation process, unbundling the Nedbank shares to shareholders after it has listed its South African and emerging markets business in Johannesburg in 2018.
London-listed Old Mutual said earlier in 2017 that it planned to distribute most of its Nedbank stake to shareholders as part of the process in which it is breaking itself up into its four component businesses in the UK, SA and US in a bid to get rid of the discount at which it is trading on the market.
However, the group disclosed on Wednesday for the first time how much of the banking group it planned to keep, saying the remaining minority holding in Nedbank would provide a foundation for the continued strategic relationship between the two entities.
Its announcement came as the group showcased the new Old Mutual Ltd, which is the company housing the group’s SA and emerging markets businesses, including Nedbank, which will seek a primary listing on the JSE in 2018, soon after the group reports its year-end results in March.
The newly listed company, which is expected to have a market value of R110bn or more, will wait a few months for its shareholder register to settle down before it distributes the Nedbank shares.