Last checked at 
(Alliance News) - Old Mutual Ltd late Wednesday announced that it will be unbundling the majority of its stake in Nedbank Group Ltd to its shareholders.
The financial services group said it will be selling 12.2% of its current 19.4% stake in the bank, leaving it with a 7.2% stake.
For every 100 Old Mutual shares, 1.32 Nedbank shares will be offered.
Old Mutual said that the unbundling will simplify the group, "allowing investors to focus on the core operations of Old Mutual" and allows shareholder to participate more directly in the differentiated investment cases of Old Mutual and Nedbank. It also noted that it "provides a substantial return of capital to shareholders".
"Old Mutual was committed to being a significant minority shareholder of Nedbank (with the right to nominate a director to the boards of Nedbank and Nedbank Ltd) whilst retaining a right to review the Nedbank Stake as appropriate from time to time," Old Mutual said.
The remaining stake will be held by Old Mutual Life Assurance Co South Africa Ltd.
Nedbank Shares closed 1.1% higher at ZAR167.67 each in Johannesburg, while Old Mutual shares closed 0.6% higher at ZAR12.99 each. Old Mutual shares in London closed up 0.2% at 64.60 pence each.
By Greg Roxburgh; gregroxburgh@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.