Old Mutual Zim relists on ZSE

26 Jun, 2018 - 13:06 0 Views
Old Mutual Zim relists on ZSE Old Mutual Zim CEO Jonas Mushosho addresses delegates at relisting event

eBusiness Weekly

Tawanda Musarurwa

HARARE – Old Mutual Zimbabwe is being listed on the Zimbabwe Stock Exchange (ZSE) as a part of a broader group strategy to focus its business in Africa.

Yesterday, Old Mutual Plc’s shares were suspended from the UK Official List and from trading on the London Stock Exchange’s main market for listed securities, and from the Johannesburg Stock Exchange, the Namibian Stock Exchange and the Zimbabwe Stock Exchange, and had already been suspended on the Malawi Stock Exchange as it moved its primary listing from London to Johannesburg.

And today the group announced it has completed its primary listing on the Johannesburg Stock Exchange with secondary listings on the London, Malawi, Namibia and Zimbabwe stock exchanges.

Old Mutual Zimbabwe has since commenced trading on the ZSE.

“The key difference between our previous listing as Old Mutual Plc in London and our primary listing as Old Mutual Ltd in Africa is that capital from our shareholders will be focused on African businesses and invested in growth opportunities present in African markets we operate in,” said Old Mutual Zimbabwe.

In March 2016, the group agreed to separate its four strong businesses into independent, standalone companies – the ‘Managed Separation’ – driven by the need to reduce costs and ensure efficient funding for its constituent companies.

“It became clear that the group’s complex structure and the high running costs of operating in diverse geographies and regulatory environments actually locked in value. To unlock that value, a Managed Separation of the four underlying businesses – Old Mutual Emerging Markets, Nedbank, UK based Old Mutual Wealth and United States-based Old Mutual Asset Management – was necessary,” said the group.

In terms of the ‘Managed Separation’, the US-based Old Mutual Asset Management (OMAM) was sold, while the United Kingdom-based Old Mutual Wealth was rebranded as Quilter Plc and is now listed on the London Stock Exchange – with a secondary listing on the Johannesburg Stock Exchange.

The wealth management company was spun off from Old Mutual Plc – a financial holding company that sold 165 million Quilter shares for around 231,1 million pounds ($306,4 million).

Quilter said the float will give it a market capitalisation of around 2,76 billion pound. Earlier in April, the group said the separation will mean that for every three shares currently held in Old Mutual Plc, shareholders will receive one share in Quilter Plc and three ordinary shares in Old Mutual Ltd.

Following the spin-off of Quilter, Old Mutual now consists of two Africa-focused companies: OML, a premium financial services group operating in the sub-Saharan region, and Nedbank.

The group has said during approximately the next six months, it intends to reduce its shareholding in Nedbank Group Limited to 19,9 percent.

This will be achieved by distributing the balance of Old Mutual Limited’s majority shareholding in Nedbank Group Limited to shareholders, in an orderly manner.

Old Mutual was started in Africa in 1845, and rapidly developed into a recognised brand across much of Southern Africa. It expanded internationally and in 1999 listed on the London Stock Exchange.

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