Old Mutual to reduce shareholding in Nedbank over time, but it’s business as usual:
On the 11th March 2016 Old Mutual plc Chief Executive, Bruce Hemphill announced that Old Mutual, a 54% shareholder in Nedbank, would be reducing their controlling stake in Nedbank over time to a strategic minority shareholding as part of their new strategy. This will take time to complete.
Bruce’s announcement is part of a change in Old Mutual’s broader strategy in order to effect a managed separation of the underlying businesses in the Old Mutual Group to improve efficiency of funding, reduce Old Mutual plc head office costs, remove complexity, including the increasing regulatory constraints and to unlock and create value for Old Mutual shareholders.
He further announced that the Group’s four underlying businesses, Old Mutual Emerging Markets, Old Mutual Wealth, Old Mutual Asset Management and Nedbank would be managed as independent businesses. Bruce highlighted that these businesses have excellent competitive positions and each have strong growth prospects in their respective markets.
The Nedbank Board has been proactively engaging Bruce and the Old Mutual Board about their new strategy and have expressed our support for this outcome and we look forward to working together to help implement the Old Mutual managed separation of the businesses in a collaborative way that benefits all stakeholders
Importantly Old Mutual have stated that they do not intend selling their Nedbank shares to another strategic investor. This means that there shouldn’t be speculation about who will own the Old Mutual shares in Nedbank that will be available as a result of their reduction in shareholding.
As our valued client, it is important for you to know that Old Mutual’s decision to separate its four businesses will have no impact on the strategy, day to day management or operations of Nedbank. Nedbank is already governed, managed and operated as an independent business which is separately listed on the Johannesburg Stock Exchange. This will not change.
Financially we are a solid business with a track record of generating strong shareholder returns and recently released a set of year end results that were well received by the market.
We remain proud to offer you world class service, products and advice. Simply put – it’s business as usual at Nedbank.
On behalf of Nedbank and the Board of Directors, I would like to thank you for your continued support. We are on track to achieve our vision to be Africa’s most admired bank and we look forward to continuing this journey with you.
Kind regards
Mike Brown
Chief Executive | Nedbank Group Limited