Cape Times

OLD MUTUAL PLANS TO UNBUNDLE 12.2 PERCENT OF ITS STAKE IN NEDBANK

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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. |

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