SPLIT OF CORE BUSINESSES
Old Mutual subsidiary ready to purchase additional shares
Old Mutual Asset Management (Omam) has the firepower to buy additional shares from its parent in 2017, it said on Thursday, indicating a faster split was on the cards. Insurer Old Mutual, which sold nearly a quarter of its interest in the US-listed asset manager in December, is in the middle of splitting its four core businesses including Nedbank and its emerging markets business. "The company has the financial capacity to purchase additional shares from the parent in 2017, if such purchase is deemed to be an accretive and value-enhancing transaction," said Omam CEO Peter Bain. Old Mutual sold more than 20-million shares to the public and Omam at the same time in 2016, with Omam snapping up 6-million shares for $85.5m as it conducted the secondary placing for its parent company. Omam had $101.9m in cash at the end of December, its results for the quarter and year to December 2016 showed.
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