In a release published September 26, Old Mutual Ltd announced that its shareholders would receive about ZAR50 billion ($3.52 billion) following the creation of an independent institution that would manage the mutual’s investments in Nedbank in the framework of a corporate spin-off.  

Indeed, in 2016, Old Mutual announced that it would split into four distinct corporations. Two will be consecrated to the management of its assets in the USA and in the UK. Another one will be in charge of its investments in Africa while the last will independently manage its investments in Nedbank.

Currently, Old Mutual owns 52% stake in Nedbank. After the spin-off that should be completed on October 15, its stakes in the bank will be 19.9%.

In detail, Old Mutual’s shareholders will receive ZAR43.2 billion for the reduction of its investments in Nedbank and ZAR7.1 billion for one-off and interim dividends that will be paid on October 16, 2018.

In addition, for each 100 Old Mutual shares owned by its investors, Old Mutual will give 3.2 Nedbank shares; totaling 158.7 million Nedbank shares.  

Founded in 1845 in South Africa, Old Mutual has already sold its branch dedicated to the management of US assets. Last June, it also floated the UK and Africa asset management entities on London and Johannesburg stock exchanges respectively. The last step in its spin-off process is the creation of an independent entity dedicated to the South African banking sector.