Old Mu­tual to relist on JSE in June

Lo­cal ex­ec­u­tives to lead in SA

The Mercury - - NEWS - Sandile Mchunu

OLD Mu­tual Limited (OML) chief ex­ec­u­tive Pe­ter Moyo said yes­ter­day that the re­turn of the group meant more than its list­ing on the JSE.

The com­pany is ex­pected to list on the JSE in June af­ter be­ing un­bun­dled from Old Mu­tual Plc.

“When the com­pany was de­mu­tu­alised in 1999, it meant that all of its se­nior lead­er­ship was moved to the UK as well as the pri­mary list­ing. Now the list­ing of Old Mu­tual Limited on the JSE will re­verse that and the group will be led by lo­cal ex­ec­u­tives,” Moyo said.

He said the group looked for­ward to its African home­com­ing as it sig­nalled its com­mit­ment to and vote of con­fi­dence in the south­ern African fi­nan­cial mar­kets.

Old Mu­tual Limited is also go­ing to be listed in Zim­babwe, Namibia and Malawi and it would con­tinue to fo­cus on the emerg­ing mar­kets in which the com­pany has a sig­nif­i­cant pres­ence al­ready.

The man­aged sep­a­ra­tion an­nounced by Old Mu­tual chief ex­ec­u­tive Bruce Hem­phill in 2016 en­tailed break­ing down the group into four sep­a­rate en­ti­ties to un­lock and cre­ate value for share­hold­ers.

“We had to get 30 reg­u­la­tory ap­provals, in­clud­ing per­mis­sion from four stock ex­changes in dif­fer­ent coun­tries. So the process has been long but we are al­most there now,” he added.

Old Mu­tual’s share­hold­ers are ex­pected to vote next week on the un­bundling, which is ex­pected to take place on May 25.

Moyo ex­plained that af­ter the un­bundling had been com­pleted, share­hold­ers would still own shares in Old Mu­tual Limited, Quil­ter (the for­mer Old Mu­tual Wealth) and Ned­bank.

“We ex­pect the stake that Old Mu­tual has in Ned­bank to be re­duced to 19.9 per­cent af­ter the un­bundling. Cur­rently Old Mu­tual owns around 53 per­cent of Ned­bank.

“For ev­ery Old Mu­tual share, share­hold­ers will get three Ned­bank shares af­ter the un­bundling, which is ex­pected to hap­pen af­ter six months af­ter the list­ing of Old Mu­tual Limited,” he said.

The group is also plan­ning to in­crease its black eco­nomic em­pow­er­ment (BEE) cre­den­tials.

Chief fi­nan­cial of­fi­cer Casper Troskie said the group wanted to in­crease BEE own­er­ship to 25 per­cent within three years af­ter list­ing.

“And within five years we in­tend to be at least equal to that of its best-em­pow­ered peer,” he said.

In South Africa, with the un­em­ploy­ment rate at a stag­ger­ing 26.7 per­cent, the group said there were no job losses dur­ing the process of man­aged sep­a­ra­tion.

Over­all, OML had high cash gen­er­a­tion with net client cash flow (NCCF) of R14.5bn and more than 12 mil­lion cus­tomers.

The group said R500m was to be ring-fenced for a per­pet­ual en­ter­prise sup­plier de­vel­op­ment fund.

Old Mu­tual (Jo­han­nes­burg) shares closed 0.24 per­cent higher on the JSE yes­ter­day at R42.09.

Ste­fanutti’s chief ex­ec­u­tive, Wil­lie Mey­burgh, says the build­ing en­vi­ron­ment in South Africa is tough at present.

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