Investec (comprising Investec plc and Investec Limited) ("the Group") – proposed demerger and listing of Investec Asset Management business ("IAM")
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014
Overview
Following the Group's announcement on management succession made in February 2018, the Joint Chief Executive Officer ("CEO") Designates, Fani Titi and Hendrik du Toit, have been working closely with the Investec Board ("Board") and current members of the Group executive (Stephen Koseff, Bernard Kantor and Glynn Burger) in order to ensure a smooth transition of leadership. In conjunction with this process, the Board together with the executive directors, have conducted a strategic review of the Group to ensure that it is positioned to enhance the long-term interests of shareholders, clients and employees.
Through the strategic review the Board has reached the following conclusions:
- The Group comprises a number of successful businesses operating across two core geographies, with different capital requirements and growth trajectories; and
- There are compelling current and potential linkages between the Specialist Banking and Wealth & Investment businesses, however, there are limited synergies between these two businesses and IAM.
The Board has further concluded that it is now appropriate to demerge and publicly list IAM ("the Transaction'"). The Investec Specialist Banking and Investec Wealth & Investment businesses will remain part of the Group's current Dual Listed Companies structure ("the remaining Group"). The Board believes that this Transaction simplifies the Group and focuses IAM and the remaining Group on their respective growth paths, which will enhance the long- term prospects and potential of both businesses for the benefit of their shareholders, clients and employees.