Old Mutual has continued with its ongoing managed separation with the public offering of 13 million ordinary shares in US business Old Mutual Asset Management (OMAM).
The shares are being offered by Old Mutual through its wholly owned subsidiary, OM Group (UK).
In addition, in a private transaction OMAM entered into a repurchase agreement with Old Mutual and OM Group (UK) where OMAM has agreed to purchase six million ordinary shares directly from OM Group (UK) at the price sold to the public.
The move is part of the managed separation, which was first announced earlier this year.
The firm is in the process of splitting up its four main businesses - Old Mutual Emerging Markets, Old Mutual Wealth, Nedbank Group and OM Asset Management in the US.
While the parent firm plans to de-merge from Old Mutual Wealth and Old Mutual Emerging Markets, which will subsequently be listed on the London and Johannesburg stock exchanges separately, Old Mutual also said it planned "a phased reduction of its 66% holding in Old Mutual Asset Managers (OMAM) in an orderly manner while supporting the development of its strategy."
It had also been reported that Old Mutual Wealth and OMAM could be bought by US buyout funds.
In the latest update, Old Mutual said it "intends to continue the reduction of its holdings in OMAM in an orderly manner which balances value, cost, time, and risk".
Old Mutual shares are up 6.6% year to date, to trade at 190p.
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