Rowing its own boat
Why Old Mutual is splitting in half
Old Mutual has returned to its Southern African home market. What can new CEO Peter Moyo do to reinvigorate the iconic but lumbering cash cow? Moyo’s management team insists the group still has plenty of room to grow — but many other firms will want to eat its lunch.
Shortly after the full-year results in March 2018, a fresh yet very familiar listing will take place. The new Old Mutual Ltd will be the group stripped down to its oldest and most profitable components, without its developed-market legs. This is the "managed separation" process driven by group CEO Bruce Hemphill, which has already resulted in all but 5% of US asset manager OMAM being sold. Nedbank has been promised a more independent future, as more than R30bn of shares held by Old Mutual will be unbundled, and there will be two new listings, Quilter in the UK and Old Mutual Ltd, the SA-based group which has the highest public profile.Old Mutual was once described as being as familiar a trademark in Southern Africa as Castle Lager. Old Mutual might not be as refreshing but it is better for your health, at least your financial health. Who anywhere in Southern Africa wouldn’t recognise its quasi-Masonic triple anchor logo? After all, it has 6.1m customers in SA, 1.1m in Zimbabwe and 3...
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