Old Mutual working with Treasury, SARB and FSB to mitigate execution risks

Joint media statement from National Treasury, South African Reserve Bank and the Financial Services Board

Old Mutual PLC has announced, following a strategic review of the Group that it intends to implement over time a managed separation of the Group into four separate businesses, including a standalone Old Mutual Emerging Markets (OMEM) and Nedbank.

SARBOld Mutual’s strategic review concluded that there are limited tangible synergies between the businesses in the Group and the current Group structure inhibits the efficient funding of future growth plans for the individual businesses. The evolving regulatory environment adds a degree of further cost, complexity and constraints because of the current Group structure.

Read also: Old Mutual strategic split: Case of when, not if. Timing crucial.

As part of this managed separation, Old Mutual has stated its intention, in time, to reduce its shareholding in Nedbank to an appropriate strategic minority position. The exact mechanism to achieve any reduction in Old Mutual’s shareholding in Nedbank has yet to be finally determined, but Old Mutual has communicated that it currently envisages reducing its shareholding in Nedbank primarily by way of a distribution of Nedbank shares to the shareholders of Old Mutual in an orderly manner and at an appropriate time in the context of the managed separation and does not intend to sell any part of its shareholding in Nedbank to a new strategic investor.

Old Mutual has been in regular contact with the National Treasury, the Reserve Bank and the Financial Services Board (FSB) over the course of the strategic review. The consultation and dialogue has been constructive, and there is a commitment by the boards of directors and management teams of Old Mutual, Nedbank and OMEM to execute the managed separation in a way that safeguards the stability and integrity of both the South African businesses and the South African financial services sector more broadly.

Read also: Old Mutual’s big day – returning to SA roots after 17 year misadventure

OMEM and Nedbank are each significant businesses in their own right with strong balance sheets. The enhanced ability of these businesses to access their natural shareholder base is welcomed; as is the increased alignment of the key governance structures and lead supervision with the location of the respective businesses. This will have positive benefits for the South African economy and capital markets.

The managed separation process will involve ongoing regulatory engagement. The FSB and the Reserve Bank will work with Old Mutual and Nedbank to ensure that any potential execution risks are mitigated.

GoHighLevel
gohighlevel gohighlevel login gohighlevel pricing gohighlevel crm gohighlevel api gohighlevel support gohighlevel review gohighlevel logo what is gohighlevel gohighlevel affiliate gohighlevel integrations gohighlevel features gohighlevel app gohighlevel reviews gohighlevel training gohighlevel snapshots gohighlevel zapier app gohighlevel gohighlevel alternatives Agency Arcade, About Us - Agency Arcade, Contact Us - Agency Arcade, Our Services - Agency Arcade gohighlevel pricegohighlevel pricing guidegohighlevel api gohighlevel officialgohighlevel plansgohighlevel Funnelsgohighlevel Free Trialgohighlevel SAASgohighlevel Websitesgohighlevel Experts