SABC News - Old Mutual says considering all options under strategic review:Monday 7 March 2016

Old Mutual says considering all options under strategic review

Monday 7 March 2016 10:28

REUTERS

Old Mutual's Johannesburg-listed shares were up 11.8 percent. (SABC)

Old Mutual, an Anglo-South African financial services company, says on Monday it was considering all options available to it under the strategic review announced in November.

The company says it had not yet made any decision on the review process, but would give an update on March 11, when it announces preliminary results.

Sky News reported on Saturday that Old Mutual was plotting a9 billion pounds ($12.8 billion) break-up that could trigger a takeover battle for the company's various operations.

Old Mutual's shares soared 11.3 percent to 200 pence by 0811GMT on the London Stock Exchange, outperforming a 0.07 percent dip in the FTSE 100.

Old Mutual's Johannesburg-listed shares were up 11.8 percent.

Sky News said the group was working on a plan to divide itself into four standalone companies comprising its stake in South African lender Nedbank Group Ltd, its UK-focused wealth unit, its South Africa-based emerging markets operation, and its institutional asset management business.

Nedbank said on Monday it was "engaging collaboratively" with Old Mutual as part of the review. Old Mutual has a 54.57percent stake in Nedbank, according to Thomson Reuters data.

Old Mutual, which offers fund and wealth management as well as banking and insurance services, posted forecast-beating third-quarter sales in November, boosted by record inflows into its wealth management unit.

The company had also reported strong sales across its Africa and emerging markets operations, with the latter up 22 percent in local currency terms.

Share this page: Printer friendly version