The move is part of the restructure that will see Old Mutual Group break up into four separate units.
According to the Financial Times, the deal involves US asset management business Affiliated Managers Group (AMG).
In exchange for its 66% stake in Old Mutual Asset Management (OMAM), valued at around $1bn (£689.9m, €891.4m), Old Mutual Group will receive a 10% stake in AMG and the remainder in cash, reports the FT citing two people familiar with the plans.
IPO
The FT further reported that 10% of the firm’s UK wealth management business, Old Mutual Wealth (OMW), will be sold through an initial public offering next year.
The remaining 90% of the business will be distributed to the parent group’s shareholders through listings in London and Johannesburg, the two sources said.
Speculation
In response to the media speculation, Old Mutual confirmed that it is continuing to assess the options available to it with regard to the managed separation announced on 11 March 2016.
“We will update the market as and when appropriate. As a consequence of the decision to proceed with the managed separation of Old Mutual, we expect to receive interest in our assets periodically.”
Old Mutual also confirmed that it has received approaches from third parties to acquire its stake in OMAM: “There can be no certainty that these approaches will lead to any transaction or any certainty as to the terms on which any such transaction might proceed. Further statements will be made if and when appropriate.”
