Old Mutual Asset Management has launched a public offering of 13m ordinary shares to raise capital for “general corporate purposes”, the firm has announced today.
The ordinary shares are being offered by Old Mutual through its subsidiary Old Mutual Group UK Limited.
Old Mutual is currently undergoing a “managed separation”, which will see OMAM, as well as Old Mutual Wealth, Old Mutual Emerging Markets and Nedbank separated and two businesses listed on the London and Johannesburg stock exchanges.
It is expected to complete in 2018.
According to a statement on the London Stock Exchange, the underwriters have a 30-day option to purchase up to an additional 1.95m shares at the public offering price, less the underwriting discount.
OMAM also agree to repurchase £6m shares directly from OM Group in a private transaction at the price per ordinary share sold to the public by OM Group in the public offering.
The closing of this repurchase transaction is subject to various conditions, including the closing of the public offering.
According to the statement, the proceeds to Old Mutual from the proposed offering and repurchase agreement are expected to be used for general corporate purposes.
Old Mutual says it intends to continue the reduction of its holdings in OMAM in an orderly manner, which balances value, cost, time, and risk.