Old Mutual target is still some way off
Almost a month after its new listings, the company’s managed separation has yet to unlock value
The managed separation at Old Mutual had a clear aim: to unlock value by listing independent standalone businesses and scrapping the top holding company. Almost a month after listing, that goal is still some way off. Prior to the separation, Old Mutual Plc had a market capitalisation of R200bn. Now, with the Africa-focused Old Mutual Ltd on R133bn and Quilter on R51bn, almost 10% of the value has been lost. Avior Capital Markets head of research Warwick Bam says the decline has more to do with global macro conditions — a sell-off across emerging markets — and does not reflect stock-specific issues. Old Mutual was expecting its share price to drop as it has exited the FTSE 100, as billions of pounds track this index. The new Old Mutual Ltd will get a prominent berth in the MSCI emerging markets index, but that isn’t much compensation. As much as Old Mutual made a fuss about "anchoring in Africa" and tried to celebrate with green vuvuzelas in Sandton on its relisting, many observed on...
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