Old Mutual share price: Company to sell further stake in asset management arm
Old Mutual (LON:OML) has announced plans to raise funds by selling a further stake in its asset management arm, Old Mutual Asset Management (OMAM). The Anglo-South African insurer said in a statement today that the unit had filed a form signalling its intention to carry out a public share offering with the US Securities and Exchange Commission.
Old Mutual spun off OMAM in a float on the New York Stock Exchange last year, but continues to own a 78 percent stake. The number and price range of OMAM shares to be offered have not yet been determined. Old Mutual revealed, however, that it would use the proceeds of the sale for general corporate purposes. The FTSE 100-listed insurer added that OMAM would not sell any shares in the proposed offering and thus would not receive any proceeds from the sale. The offering is to be made through global coordinators and joint book-running managers BofA Merrill Lynch, Morgan Stanley & Co., Citigroup, and Credit Suisse Securities.
OMAM’s institutional clients withdrew a net $200 million from the business in the first three months of the year, taking its total funds to $224 billion, Old Mutual said in a trading update last month. The group’s chief financial officer, Ingrid Johnson, revealed at the time of the release that the outfows were caused by customers shifting their assets out of global equities, combined with a series of asset disposals. She said the group “will be a supportive shareholder” in OMAM, declining to comment on whether it will sell down more shares.
Old Mutual’s share price dipped briefly in early trading today. By 10:11 BST, the stock had gained some ground, changing hands at 208.50p – just 0.05 percent below its previous day’s losing level. The company has seen its shares rising almost 10 percent since the beginning of the year.
As of 10:48 BST, Tuesday, 09 June, Old Mutual plc share price is 208.20p.
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