Shareholders will receive a R50bn windfall as Old Mutual pares its position in Nedbank from 52% to 19.9%
10 October 2018 - 11:31
Karl Gernetzky
Picture: BLOOMBERG/DEAN HUTTON
Financial services group Old Mutual’s share price
fell 26% to R74.21 on Wednesday morning, as the company proceeds with
the unbundling of its majority stake in Nedbank.
Old Mutual shareholders are set to receive 3.2116 Nedbank shares for
every 100 Old Mutual shares, in a R50bn windfall for shareholders.
Tuesday was the last day to trade in Old Mutual Shares, while
fractional entitlements for shares will be determined by Nedbank’s
closing share price on Tuesday.
Old Mutual maintains that the unbundling will benefit shareholders
materially as well as by allowing investors to participate in differing
investment cases.
Old Mutual, which houses the core emerging-market businesses, listed
on the JSE in June, as part of the managed separation process. The
emerging-market segment has insurance and asset-management businesses,
predominantly in Africa, under its wing.
gernetzkyk@businesslive.co.za
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