Old Mutual leaves India
Kotak joint venture sold as group breaks up and emerging-market focus turns to Africa
Old Mutual has left India, selling its share of a joint venture with that country’s Kotak Mahindra Bank, one of several disposals planned as the group separates its four core units and its emerging markets arm retreats from markets outside Africa. On Friday, the group headed by CEO Bruce Hemphill, said it had sold its 26% interest in Kotak Mahindra Old Mutual Life Insurance for 12.9-billion rupees ($200m). The insurance and investment venture was a partnership between the bank and Old Mutual SA, part of Old Mutual Emerging Markets (Omem). The deal follows the sell-down of its holding in US fund manager Old Mutual Asset Management to 25.9% from 50.8%. Adrian Cloete, portfolio manager at PSG Wealth, said Old Mutual would make a profit on the Kotak sale. "Management expects to receive a net consideration the equivalent of £141m and as the carrying value [at December 2016] of the stake was only £45m, they should realise a profit of £96m — about 0.5% of its market value. "Old Mutual’s ma...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.