NEDBANK GROUP LIMITED LONDON (Reuters) - Anglo-South African financial services firm Old Mutual's (>> Old Mutual plc) planned demerger and listing of its UK asset management unit could also include the sale of equity through an initial public offering, an Old Mutual spokesman said on Wednesday.
Old Mutual is planning to break itself up into its four main businesses, with a target date for completion of end-2018.
"We may potentially have an IPO element for Old Mutual Wealth, but... the listing will be primarily via a demerger," an Old Mutual spokesman said by email, confirming comments he said were made at a capital markets day this week.
A demerger via a listing offers shares to existing shareholders, while an IPO is a share offering on the open market.
Old Mutual has said it plans to cut its stakes in its U.S. business OM Asset Management (>> OM Asset Management PLC) and South African bank Nedbank (>> Nedbank Group Ltd.) and aims to dual-list its UK asset management and emerging markets businesses in London and Johannesburg.
It said it was also open to approaches to sell its businesses. Analysts value Old Mutual Wealth at 3-4 billion pounds.
Old Mutual Wealth posted a sharp drop in third-quarter client inflows on Tuesday and said markets would remain difficult following Britain's vote to leave the European Union.
(Reporting by Carolyn Cohn; editing by Simon Jessop)
