All eyes on Old Mutual’s corporate actions
It is not expected to repeat its 2016 results so the focus is on the progress of the managed separation programme
The key issues concerning shareholders when Old Mutual reports its results in early August will not be the short-term numbers, but its corporate action plan. Few analysts expect it will be able to repeat its 2016 results. The UK-based Old Mutual Wealth results will not look good when translated back into rand. The average rand/pound exchange rate has strengthened about 30% over the six months in favour of the rand. All the chatter in the bars around the Sandton finance houses is focused on the progress of the managed separation programme — which will split the business into four. Simon Raubenheimer, a portfolio manager at Allan Gray, says Old Mutual has been one of the big disappointments of the past year, falling 20% from its highs to R33. Allan Gray hangs on to its large holding (it is one of its top five shares), waiting for value to be unlocked. So far it hasn’t felt it necessary to put its foot down as it did at Group Five. Old Mutual CE Bruce Hemphill’s two big successes have ...
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