Old Mutual has agreed to sell a 24.95 per cent stake in Old Mutual Asset Management to HNA Capital US for $446m (£355m).
Following the sale, Old Mutual’s shareholding will halve from 50.8 per cent to 25.9 per cent.
The initial part of the transaction, expected to take place in 30 days subject to US regulation, includes a 9.95 per cent tranche of Old Mutual’s OMAM shares at $15.30 per share. The second part of the sale comprises a 15 per cent holding at a price of $15.75 per share, and should complete in the second half of 2017 once regulatory approval in other jurisdictions has been secured.
Old Mutual says it will use the proceeds for “general corporate purposes”.
Following the transactions, two HNA Capital US-nominated directors will join the OMAM board, replacing existing board members.
James Ritchie, chairman of OMAM’s board of directors, says: “We are pleased to welcome HNA Capital US as a new, supportive investor in OMAM. We remain focused on executing our growth strategy, which includes working collaboratively with our high quality affiliates to diversify their businesses and expand their global distribution opportunities, as well as acquiring new affiliates, to generate strong, long-term value for all of our shareholders. We look forward to working with HNA Capital US to accelerate our growth strategy for the benefit of our clients, affiliates and shareholders.”
Guang Yang, chief executive of HNA Capital US, adds: “OMAM is a diversified, at-scale multi-boutique asset management franchise with an attractive portfolio of high quality investment managers. We are pleased with our investment in OMAM and look forward to supporting OMAM’s continued growth.”