Old Mutual sets price range for Quilter Plc

OLD MUTUAL Plc yesterday set a price range of between 125 pence (R21.83) and 155p per ordinary share for its global offer for shares in its newly established Quilter Plc. The range was approved by the Financial Conduct Authority.

It said a total number of 164 977 971 shares alongside an over allotment option of up to 10 percent of the total number of ordinary shares had been set aside for the global offer, which would represent 9.5 percent of Quilter’s total shares.

“The final offer price in respect of the global offer and the number of ordinary shares to be sold in the global offer, if any, is expected to be determined following publication of a price range supplement and is currently expected to be announced on or about June 25, 2018,” the group said. The setting of the Quilter offer is part of Old Mutual Plc’s managed separation announced by chief executive Bruce Hemphill in March 2016 through which the group would be separated into four separate entities.

The other businesses include BrightSphere Investment Group, a US-based institutional asset manager, which rebranded from OM Asset Management in March 2018, is now independent from Old Mutual; Old Mutual Limited, which includes Old Mutual Emerging Markets and Nedbank.

Quilter, formerly known as Old Mutual Wealth, is expected to list on the London Stock Exchange and the JSE later this month.

Old Mutual Plc has said the separation was aimed at making the group a premium financial services group in sub-Saharan Africa to offer a broad spectrum of financial solutions to retail and corporate customers across key market segments in 17 countries.

The group has also said that it would reduce its stake to 19.9 percent from 53 percent in Nedbank after six months of listing Old Mutual Limited.

Quilter is a leader in the UK and in selected offshore markets in wealth management, providing advice led investment solutions and investment platforms to over 900 000 customers, mostly in the affluent market segment.

In the recent quarter results to end March, Quilter said it oversaw £111.6 billion (R1.95 trillion) in customer investments.

It also reported a 14 percent increase in net client cash flow (NCCP) in the first quarter of 2018 as a result of resilience in assets under management and administration.

NCCP increased to £1.6bn in the quarter, up from £1.4bn as compared to the first quarter of 2017.

Quilter has two segments: Wealth Platforms and Advice and Wealth Management.

Old Mutual shares declined 1.13 percent on the JSE yesterday to close at R38.35.