Old Mutual Limited yesterday relisted its shares on the Johannesburg Stock Exchange (JSE), undertook a standard listing on the London Stock Exchange (LSE) and secondary relistings on stock exchanges of Malawi, Namibia and Zimbabwe.
The relisting is the result of Old Mutual plc’s “Managed Separation” strategy, which was announced in March 2016, to separate the London-based group into four independent, standalone companies.
The foremost aim of this strategy is to unlock value that was trapped within the group structure and removing costs arising from the London-based office, and in so doing create better long-term value for shareholders. Speaking at the relisting of Old Mutual on the Zimbabwe Stock Exchange, Old Mutual Zimbabwe Group chief executive officer and the Rest of Africa CEO, Jonas Mushosho said the key difference between the group’s previous listing as Old Mutual Plc in London and its primary listing as Old Mutual Limited in Johannesburg is that the capital from shareholders will be used in its African businesses and invested in the growth opportunities present in the African markets in which it operate.
“This listing also provides an opportunity to grow Old Mutual, and the solid business we will build will be better placed to do even more as a responsible business for our surrounding communities,” he said.
To effect the managed separation process, two separately listed entities were established:
One is the new South African holding company, Old Mutual Limited (OML), which consists of Old Mutual’s Emerging Markets business, Old Mutual’s 54 percent holding in Nedbank and the residual Old Mutual Plc, that is, the remaining assets and liabilities of the business post the managed separation.
The other one is Quilter Plc, which is the former Old Mutual Wealth UK operation that listed on the London Stock Exchange, with a secondary listing on the JSE on Monday.
The remaining two businesses in the group are already independently listed entities: namely the Nedbank Group, which Old Mutual Limited plans to reduce its shareholding in to 19,9 percent by the end of the year; and the former Old Mutual Asset Management company based in the US, whose majority shareholding was reduced to 5 percent as part of the managed separation process.
Old Mutual Limited chief executive officer Peter Moyo said: “What’s most exciting about our listing as an independent, standalone entity is that it enables us to unlock shareholder value and create a business with a strong strategic focus on sub-Saharan Africa.
“Our investment case is strong and compelling. Our business remains highly cash generative and is well-positioned in the right markets to drive added value from our franchises.
“We are privileged to have a business with a robust capital and liquidity position, which will provide the right springboard to become a leading Pan-African financial services business.
“Exciting opportunities lie ahead for us at Old Mutual Limited and we look forward to delivering sustainable profit growth and returns for our shareholders, and making meaningful contributions to the societies in which we operate. By driving long-term economic growth in Africa, we can positively impact the lives of all our customers and communities on the continent. It is important that we reassure our customers that they will continue to be in the same capable hands, and that the day-to-day running of our business will continue as usual.
“Their investments and policies, and our product offerings, will not be affected by Managed Separation and our listing. We will remain a financially strong, well-capitalised and well-governed business with capabilities that position us well to meet the changing needs of our customers in various segments across Africa,” concluded Mr Moyo.