The break-up of Old Mutual is unlikely to disrupt Nedbank's operations to the extent that its peer, Barclays Africa, is being affected by its separation from UK parent Barclays plc. While many analysts feel that Old Mutual is trading at a discount and the "true" value of the business will be unlocked once the separation is complete, Nedbank is trading at a premium relative to its peers and the market. "From a target price perspective, there was a time when Nedbank was a bit undervalued but we've seen it trade close enough to its fundamentals to imply that Old Mutual's ownership doesn't have a material impact on the share price," said Harry Botha, a banking analyst at Avior. Unlike Old Mutual Emerging Markets, said Botha, Nedbank's being a listed entity meant one did not see the discount factor that affected Old Mutual's other businesses.Botha also said there was little concern about possible fore-selling following OMEM's listing as a separate company and the subsequent distribution ...
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