Old Mutual details demerger

Old Mutual gave more information today (28th June) on its ‘managed separation’, detailing out plans for a demerger of Old Mutual Wealth, and a listing on stock exchanges in London and Johannesburg.
We first reported on the proposed demerger process in March, with the four parts of its business – Old Mutual Emerging Markets, Nedbank, Old Mutual Wealth and US-based UM Asset Management – to be separated following a strategic review.
Nedbank and Old Mutual Asset Management are already publicly listed, with Old Mutual Wealth and Old Mutual Emerging Markets now set to follow suit.
In today’s report, they state this managed separation should be complete by the end of 2018.  The intention is to follow one or more transactions, with the end goal to deliver 2 separate business entities.
Paul Feeney, CEO of Old Mutual Wealth, comments:  “Today’s announcement is a clear endorsement of our vertically integrated strategy and the strength and readiness of our business for the next stage of our corporate journey.  By putting customer needs at the heart of our business strategy, we are transforming into an award-winning, next generation wealth management business. Old Mutual Wealth is a purpose-led, responsible business, building simple end-to-end solutions for real customer needs, accountable for helping create prosperity for the generations of today and tomorrow.”
Commenting on the result of the EU Referendum, Paul added: “What the landscape will look like when the UK extracts itself from the EU is far from clear. It is our expectation that the outcome of the EU Referendum vote will continue to drive increased levels of market volatility.  Our focus is on our customers, on managing their assets and helping them navigate through these uncharted waters.  We will not lose our focus on this task.”
As part of the strategic review, Old Mutual have  “reinforced the senior management team by adding specialist capacity to drive the planning and execution of the managed separation”  As a result, an organisational redesign is taking place, to ensure the structure and capabilities of the team align to the objectives of the demerger, and the future of the new entities.  This has led to a consultation with the head office, and “reducing full time equivalent (“FTE”) headcount at plc by 15%, and will see further phased reductions in FTEs as the managed separation progresses”
Old Mutual Wealth have an advisory business run through Intrinsic, Old Mutual Wealth Private Client Advisers. We recently reported on their acquisition of DQS Financial Management in Devon.  If you are interested in joining Old Mutual Wealth Private Client Advisers contact me on louise.jeffreys@gunnerandco.com