OLD MUTUAL PLANS TO UNBUNDLE 12.2 PERCENT OF ITS STAKE IN NEDBANK
OLD MUTUAL said yesterday that it would unbundle all the Nedbank shares held by Old Mutual Emerging Markets, comprising 12.2 percent of the share capital of Nedbank. The unbundling to Old Mutual shareholders, worth
R10.3 billion based on Nedbank’s market capitalisation yesterday, would be by way of a distribution in specie. Old Mutual had maintained a minority 19.4 percent shareholding following the conclusion of its managed separation process in 2018. This level of the Nedbank stake was determined through discussions with Nedbank and regulators at the time to ensure cohesive alignment with the ongoing commercial arrangements between the two, and to support the capital structure of the Old Mutual group. Old Mutual said it had been committed as a significant minority shareholder of Nedbank and had retained a right to review the stake from time to time, in accordance with the protocols in their April 2018 agreement . Disposing of the stake would simplify the group, allow investors to focus on the core operations of Old Mutual, shareholders to participate more directly in the investments of
Old Mutual and Nedbank, and provide a substantial return of capital to shareholders. |
BUSINESS REPORT
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2021-06-24T07:00:00.0000000Z
2021-06-24T07:00:00.0000000Z
https://thestar.pressreader.com/article/281698322713449
African News Agency