The unbundling of Old Mutual’s majority shareholding in Nedbank will result in a total distribution of approximately R43.2bn to shareholders, completing the Group’s managed separation. The distribution of Nedbank shares will take place on 15 October 2018, in line with the timeline previously communicated.
The Group currently holds approximately 52% of the issued share capital of Nedbank in its shareholder funds. After the Nedbank unbundling, it will retain a minority interest of 19.9% of the issued share capital of Nedbank in the shareholder funds of Old Mutual Life Assurance Company.
“We really are delivering substantial value to our shareholders as the Nedbank unbundling, together with the R7.1bn in interim and special dividends we are paying on 16 October, equates to R50bn, which is more than a third of our market capitalisation,” said Peter Moyo, CEO of Old Mutual.
Qualifying shareholders will receive approximately 3.2 Nedbank shares for every 100 Old Mutual shares and cash in respect of any fractional entitlements arising from the transaction. The unbundling will allow investors to participate in the different investment merits of Old Mutual and Nedbank and support the efficient allocation of capital by Old Mutual through the retention of a minority stake in Nedbank.