Split could cost Old Mutual £230m
The benefits to shareholders may be more than £2bn, while the group says it is on track to meet deadline of end-2018
Old Mutual’s managed separation process will incur one-off costs of as much as £230m, but the group estimates that the benefits to shareholders could reach more than £2bn.
The group said on Thursday that it was on track to meet its end 2018 deadline to complete the break-up of the group, which it announced a year ago.
This came as London-listed Old Mutual announced a 1% increase in adjusted operating profit to £1.67bn, slightly ahead of market expectations.
The managed separation process will see the group break up into its four main businesses, with Old Mutual’s South African-based emerging markets business and its London-based wealth management business listed separately, while it sells down its stake in its US asset-management business and unbundles its controlling stake in Nedbank to investors.
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