Old Mutual plc yesterday concluded the separation of its businesses into four standalone entities by delisting on the Malawi Stock Exchange (MSE) to pave the way for Old Mutual Malawi Limited.
The developments happened simultaneously in South Africa on the Johannesburg Stock Exchange (JSE) where Old Mutual plc moved its primary listing from London Stock Exchange (LSE) with secondary listing in Namibia Stock Exchange and Zimbabwe Stock Exchange.
Old Mutual Malawi’s listing on MSE has created 5.5 million shares listed on the local bourse at K1 580.22 per share, bringing the market capitalisation to K9.2 billion.
This makes Old Mutual Malawi one of the biggest companies on the 14-counter stock exchange, according to MSE chief executive officer John Kamanga despite listing a portion of the Old Mutual Group.
Old Mutual Malawi group chief executive officer Edith Jiya said the listing provides an opportunity to grow the value and reach the maximum potential of the business.
“Now that this will be a business solely focused on Africa markets in terms of capital investments, strategy and opportunities, shareholders will have a clear picture and understanding of the business.
“Shareholders should be well assured that we are now focused on Africa and will deal with challenges the African way,” she said.
Old Mutual plc, a holding company for several financial services companies, in March 2016 announced a new strategy of managed separation of its underlying businesses into independently-listed, standalone entities.
This has led to the breakup of the group into four main businesses, namely BrightSphere Investment Group, a US-based institutional asset manager, which rebranded from OM Asset Management in March 2018; Quilter, formerly Old Mutual Wealth, OML, which includes Old Mutual Emerging Markets and Nedbank, a South Africa-based bank.
Stockbrokers Malawi Limited chief executive officer Noel Kadzakumanja said yesterday the move means more dividends for shareholders of Old Mutual as they will now have an additional share in the three other entities.
“Malawian shareholders will realise more value and return as they will also have a share in three other companies that Old Mutual has shares in,” he said.
In an interview, MSE’s Kamanga said this development gives an avenue for investment for local investors.
“To have Old Mutual maintain its listing on the MSE is a sign of confidence and trust in the economy,” he said.
In the year ended December 31 2017, Old Mutual plc reported an adjusted operating profit before tax of £2.0 billion (K1.9 trillion).