Shareholders vote in favour of Investec Asset Management demerger
Investec’s shareholders have voted in favour of the proposed separation and listing of its asset management business, Ninety One, now Investec Asset Management.
The split will see Investec break away into Investec Bank & Wealth and Investec Asset Management, which will become Ninety One.
Shareholder approval of the transaction was the last outstanding requirement as regulatory approval has already been granted.
In a statement, Investec joint CEOs Fani Titi and Hendrik du Toit said: “We are pleased that our shareholders have given overwhelming support to the demerger of Ninety One, a part of the strategy to focus and simplify the businesses. Both Investec and Ninety One are now positioned for sustainable, long-term growth. We are fully confident that our clients, shareholders and stakeholders will be the beneficiaries.”
The expected first day of trading is March 16, with the unit expected to be listed in London and Johannesburg.
Investec will retain a 15% stake in its former asset management division after the separation, which will strengthen the bank’s overall capital base.
Investec shareholders will receive one share in Ninety One for every two held in the Investec group.
Investec had previously said its shareholders will own 55% of the combined total issued shares of Ninety One. Based on Investec’s market capitalisation of R88.66bn on Monday, this implies a value of R29.3bn for Ninety One.
Shares in Investec closed the day 0.31% lower on Monday at R86 a share.