Old Mutual in $446m sale of US fund business stake
Old Mutual latest US deal worth $446m will help reduce its head office debt burden and meet ‘managed separation’ costs
Old Mutual has taken another step on the road to breaking itself up, with a $446m sale of a stake in its US fund management business that will help it to reduce its head office debt burden and meet the costs of its "managed separation". The latest US deal, which comes after the London-listed group sold its holding in New York-listed Old Mutual Asset Management (OMAM) down from 66% to 51% in December, will see it sell a further 24.95% of OMAM to China’s HNA Capital, which is in airports, containers as well as in financial services. Old Mutual has made it clear it plans to divest its entire stake in OMAM and the HNA deal does not in any way restrict it from selling the remaining 26% to other shareholders. Old Mutual strategy director Ian Gladman said at the weekend the deal was a win-win for OMAM. "It will reduce the overhang in its shares and bring in a stable shareholder and it will realise a dollar premium price for Old Mutual PLC." Boston-based OMAM is a "multi-boutique" fund mana...
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