Yahoo Finance Old Mutual sells $440m stake in asset management arm in step closer to full break-up
Investments giant Old Mutual is selling a $446m (£358m) stake in its asset management arm in the latest stage of its plan to split itself up into four independent companies.
The FTSE 100 finance firm is cutting its stake in OM Asset Management in half, losing its majority position by selling down from a 50.8pc shareholding to 25.9pc.
That 24.9pc stake will go to HNA Capital US, part of the Chinese finance group HNA.
The investment is big enough that HNS will be able to nominate two directors to sit on the board of OM Asset Management.
The asset management operation is already listed in the US, and is closing in on its aim to be split off fully from the UK-based parent.
Old Mutual’s group chief executive Bruce Hemphill said the deal “secures a strategic long-term investor for OMAM.” The group can continue to sell its remaining stake with no lock-up or time restrictions under the terms of this deal.
It comes after Old Mutual Wealth Italy was sold for £210m, and the sales have helped the holding group slash its debt by £385m to £950m.
Next the Anglo-South African group plans to sell its other assets.
It wants to list Old Mutual Emerging Markets as well as Old Mutual Wealth, which will allow it to fully split up the entire business next year.
In preparation for this the group has already cut its head office workforce in half.
It has hired three new directors for the OM Wealth unit before it floats in London and Johannesburg, taking on financial services veterans Rosie Harris, George Reid and Tim Tookey to bolster the board of the firm.
Earlier this month it appointed Trevor Manuel, the former South African finance minister, as chairman of the emerging markets operation, again increasing its clout before it seeks external investors to back the flotation.
