Old Mutual dissociates the shareholding from Nedbank

The Chronicle

Oliver Kazunga, Senior Business Journalist
GIANT financial services group Old Mutual has announced the unbundling of 12.2% of its stake in Nedbank subject to regulatory approval.

In a trading update for the six-month period ended June 30, 2021, Old Mutual said: “Subject to regulatory approval, Old Mutual will unbundle all Nedbank common shares held by Old Mutual Emerging Markets Limited (i.e. 62,131 692 Nedbank ordinary shares and comprising 12.2% of the issued ordinary share capital of Nedbank).

He said the remaining Nedbank stake held by Old Mutual Life Assurance Company South Africa (OMLACSA) continues to support OMLACSA’s capital structure and would be managed in accordance with the group’s financial management framework.

“In order to optimally manage the capital structure, we have entered into a zero-cost tunnel agreement on the majority of OMLACSA’s exposure to Nedbank,” the group said.

Following Old Mutual’s voluntary operating update of June 23, 2021, this trading record for the period under review, provides an indication of a range for net earnings per common share and earnings attributable to shareholders. of the group per ordinary share.

The group’s interim results will be published on the Stock Exchange News Service of the Johannesburg Stock Exchange Limited on August 31, 2021.

“Local and global equity markets rallied on improving corporate earnings as foreclosure restrictions eased.

“Markets recovered before pre-Covid-19 levels. However, the environment remains unstable as we go through the difficult impact of the pandemic.

“We continue to be agile in our response to the impact of the pandemic on our business, with a good recovery in sales and results for the first half,” said the group.

Paid death claims related to Covid-19 in life activities lead to negative net customer cash flows.

“However, this is offset by the fundraising in our asset and wealth management business.

“Our mortality experience was worse than expected with an impact on earnings mitigated by a partial reversal of provisions lifted at the end of 2020,” he said.

The group’s Covid-19 provisions have been increased by R 2 billion as of June 30, 2021 to reflect emerging expectations from waves three and four as well as potential future waves.

“The provisions have been updated to take into account the additional data available to date as well as the anticipated impact of the proposed vaccination deployment plan,” Old Mutual said. – @okazunga.

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