Old Mutual said to be mulling sale of UK wealth unit, dropping IPO
OLD Mutual, Africa’s largest insurer, may drop plans for a listing of its UK wealth management unit because of escalating costs from an upgrade of its investment platform, according to a person familiar with the matter.While managers at Old Mutual Wealth want to proceed with an initial public offering, executives at the group level are leaning towards options including a sale of the unit, the person said, asking not to be identified because the discussions are private. An external spokesman for Old Mutual declined to comment.Upgrades to the wealth unit’s investment platform started in 2013 and London-based Old Mutual has pushed out the completion date to 2019, from the end of 2016. Delays have added to the cost, which is now expected to be as much as £450m compared with an estimated £160m in 2013, company filings show.Old Mutual has already contacted potential buyers for the UK unit, the third-largest wealth manager in Britain based on assets under administration, a person familiar ...
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