Ned­bank says it’ll be business as usual af­ter part­ing with Old Mu­tual

Strat­egy, day-to-day man­age­ment ‘won’t be af­fected’

The Star Early Edition - - COMPANIES - Sandile Mchunu

NED­BANK chief ex­ec­u­tive Mike Brown is con­fi­dent that the bank will con­tinue to op­er­ate suc­cess­fully af­ter it has been listed as a separate en­tity by Old Mu­tual.

“For Ned­bank, it is business as usual, and Old Mu­tual’s de­ci­sion will have no im­pact on the strat­egy, the day-to-day man­age­ment or op­er­a­tions. Our en­gage­ments have been at arm’s length, over­seen by in­de­pen­dent board struc­tures,” Brown said.

Brown told Business Re­port yes­ter­day that Old Mu­tual will still hold a strate­gic mi­nor­ity stake in Ned­bank.

“Old Mu­tual op­er­ates pre­dom­i­nantly in the in­vest­ment, sav­ings and in­sur­ance in­dus­try, which has lit­tle over­lap with bank­ing. How­ever, we com­pete in the ar­eas of wealth and as­set man­age­ment and per­sonal loans,” he said. “Our tech­nol­ogy sys­tems, brands and busi­nesses have not been in­te­grated.”

He said Old Mu­tual would de­liver its half-year re­sults next week, when more up­date on the sep­a­ra­tion could be ex­pected.

In May, the com­pany an­nounced that it in­tended to list a new South African hold­ing com­pany on the JSE with a se­condary list­ing on the Lon­don Stock Ex­change.

The group said the newly listed com­pany would be named Old Mu­tual Lim­ited and would ini­tially com­prise Old Mu­tual Emerg­ing Mar­kets, the group’s Ned­bank share­hold­ing, as well as Old Mu­tual plc, which would be­come a sub­sidiary of Old Mu­tual Lim­ited.

The sep­a­ra­tion is ex­pected to be ma­te­ri­ally com­plete by the end of 2018, and the list­ing of Old Mu­tual Lim­ited is ex­pected to take place in 2018, fol­low­ing Old Mu­tual plc’s 2017 full-year re­sults an­nounce­ment. The group added that the sub­se­quent dis­tri­bu­tion of a sig­nif­i­cant pro­por­tion of the share­hold­ing in Ned­bank from Old Mu­tual Lim­ited would fol­low in due course in an or­derly man­ner as pre­vi­ously an­nounced.

“Our col­lab­o­ra­tion with Old Mu­tual plc to un­lock R1 bil­lion of syn­er­gies by the end of 2017 from the Old Mu­tual plc busi­nesses in South Africa re­mains on track and will con­tinue to be un­der­pinned by Old Mu­tual Lim­ited’s strate­gic share­hold­ing of Ned­bank Group. We are fully com­mit­ted to work­ing with Old Mu­tual Lim­ited to de­liver on­go­ing syn­er­gis­tic ben­e­fits on an arm’s length ba­sis,” Ned­bank said.

Old Mu­tual has been go­ing through some changes at the top. At the end of June, Old Mu­tual As­set Man­age­ment (Omam) an­nounced the de­par­ture of Pe­ter Bain. He stepped down from his roles as pres­i­dent, chief ex­ec­u­tive and direc­tor, po­si­tions he has held since 2011. He was re­placed by James Ritchie, the chair­per­son of the Omam board of di­rec­tors, as ex­ec­u­tive chair­per­son and in­terim chief ex­ec­u­tive.

Old Mu­tual shares gained 2.42 per­cent on the JSE yes­ter­day to close at R35.59.

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