Old Mutual: no decision yet on split

Old Mutual says it has made no decision on a strategic review of its assets - despite weekend reports that it is considering splitting the business into four parts.

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Johannesburg – Old Mutual said on Monday that it had made no decision on a strategic review of its operations after news reports over the weekend that it was considering a split of its multi-billion rand business into four parts.

Sky News first reported on Saturday that Old Mutual was considering splitting into four companies, namely wealth management, asset management, emerging markets and its stake in Nedbank.

In a statement on Monday, however, Old Mutual said it noted the press speculation, but said this was part of a strategic review that it announced in November when new chief executive, Bruce Hemphill, joined the company.

“We can confirm that all options for the strategic review are being considered but no decision has yet been made,” Old Mutual said.

The financial services firm said it planned to update investors on the review when its full-year results for 2015 are announced on Friday.

In the year ended 31 December 2014, the Group reported adjusted operating profit before tax of £1.6 billion and had £319 billion of funds under management from core operations.

Speculation about a potential break up of Old Mutual was reported to have sent its shares up 10 percent in early trading on Monday in London and Johannesburg.

Old Mutual provides investment, savings, insurance, and banking services to more than 17 million customers in Africa, the Americas, Asia and Europe.

African News Agency