Investec to raise $242 million spin-off capital

Anglo-South African financial services group, Investec expects to raise about $242 million from the sale of around 10% of its asset management business, which will be renamed ‘Ninety One’, when it is spun off in March. 

Investec, which manages more than $154 billion in assets, announced plans for the split last year, saying the asset manager would be better able to focus on creating long term value away from Investec’s banking and wealth operations. 

The demerger follows similar moves by Prudential, Old Mutual and Deutsche Bank as fees fall and costs rise in the fund management sector. 

Joint Chief Executive, Fani Titi says the move is in the interest of shareholders and clients. 

Your Friends Also Read:  Guinness PRO14 drop South African teams

“Shareholders will benefit from direct ownership of two attractive, independent businesses with management teams focused on long-term growth and value creation,” he says. 

Investec shareholders will receive one Ninety One share for every two Investec shares, both for its Johannesburg and London-listed stock. 

In a circular to shareholders on yesterday, Investec declared that the expected proceeds are based on its valuation of the Ninety One businesses at 1.89 billion pounds as of October 25 this year. 

Actual proceeds of the Ninety One share sale will only be determined at the time of the split, which is scheduled for March 13 and requires shareholder approval. The business will have a dual-listing in London and Johannesburg.

Your Friends Also Read:  Gunmen Attack Greenfield University in Kaduna, Nigeria, Kidnap Students

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.

Contact: digital@newscentral.ng

Total
1
Shares

Leave a Reply

Previous Article
Morocco's health minister urges doctors to prioritise patient care

Morocco's health minister urges doctors to prioritise patient care

Next Article

Insurers shun South African Airways amid financial doubts

Related Posts