Old Mutual plots break-up: Report

Old Mutual plots break-up: Report

LONDON. – Old Mutual, the Anglo-South African financial services firm, is plotting a 9 billion pounds ($12,8 billion) break-up which could trigger a takeover battle for its various operations, Sky News reported. Without citing sources, it said the group is working on a plan to divide itself into standalone companies comprising its stake in South African lender Nedbank, its UK-focused wealth unit, its emerging markets operation based in South Africa, and its institutional asset management business.

Sky News said two private equity firms, Cinven and Warburg Pincus, are already said to have tabled a multi-billion pound joint cash offer for Old Mutual Wealth. A spokesman for Old Mutual declined to comment, as did spokeswomen for Cinven and Warburg Pincus.

Old Mutual is due to publish full-year results on March 11. Its shares have fallen 21 percent over the last year, with the group hurt by a weak rand. They closed Friday at 178,6 pence, valuing the business at 8,83 billion pounds. – Reuters.

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