Old Mutual has agreed to sell a stake in its US asset management business, a move that is expected to bring the flotation of Old Mutual Wealth (OMW) one step closer.
It was announced this morning that Old Mutual had agreed to sell a minority stake, 24.95% (worth £356m) in the American arm of Old Mutual Asset Management (OMAM) to HNA Capital, a Chinese-owned company, whose parent company is Hainan Airlines.
It was announced by Old Mutual Group last year that the company would separate itself into four distinct parts. After the minority stake sale of the American division of OMAM, the firms reported last year that its next step will be to sell 10% of Old Mutual Wealth through means of an IPO within 2017.
The rest of the business would be distributed to Old Mutual’s shareholders through the London and Johannesburg listings.
Speaking concerning the deal announced this morning, Bruce Hemphill, group chief executive of Old Mutual commented, ‘We are very pleased to announce this transaction which brings forward further realisation of value for Old Mutual. It represents another step in delivering our managed separation strategy and secures a strategic long-term investor for OMAM’.
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