OM opens ZSE trading at 450c

OM opens ZSE trading at 450c
Published: 28 June 2018
OLD Mutual Limited shares closed at 450 cents on Tuesday, the stock's first day of trading on the Zimbabwe Stock Exchange (ZSE).

Trading in the stock, which represents a relisting of Old Mutual plc following a split of the entity into four separate listed-businesses, opened on Tuesday across five exchanges.

Old Mutual Limited which holds the former Old Mutual Emerging Markets assets, Old Mutual plc's residual interests and its 54 percent stake in Nedbank, now has a primary listing on the Johannesburg Stock Exchange (JSE), a standard listing on the London Stock Exchange (LSE) and secondary listings in Zimbabwe, Malawi and Namibia.

On the ZSE, the stock closed its first day of trading at 450cents, 25,03 percent lower than the last trading price of Old Mutual plc on the exchange.

Old Mutual Zimbabwe Limited group chief executive officer Jonas Mushosho said Old Mutual Limited, which is an offshoot of the ‘Managed Separation', has a strong focus on Africa.

"The key differences between the previously listed entity Old Mutual plc and the Old Mutual Limited entity is that the Old Mutual Limited has a very strong focus on African operations — hence the tag line for this occasion ‘Anchoring in Africa'," Mushosho said while speaking at the listing ceremony.

"This brings us to an exciting path of positioning Old Mutual as Africa's premium financial services Champion," he added.

Mushosho said the shareholders would get more value from the new structure because the listing of old Mutual Limited will get rid of the "conglomerate discount" that existed on the Old Mutual plc share, which had a primary listing on the LSE and secondary listings on the JSE, the Malawi Stock Exchange, the Nairobi Stock Exchange and the ZSE.

"The process that has culminated in this event today, called ‘Managed separation", was conceived on the basis that there is no strategic advantage to holding businesses together that have no material synergies between them. Hence, the conclusion was reached that the Old Mutual plc group be split into four stand-alone, listed businesses," said Mushosho.

The group now exists as Old Mutual Limited, which is focused on sub-Saharan Africa financial services, Nedbank which is the fourth largest South African listed bank, Old Mutual Wealth — now Quilter and OM asset Management.

Upon Old Mutual plc's break-up, shareholders in the parent company received one share in Quilter and roughly three shares in Old Mutual Limited for every Old Mutual plc share held.

"This change in our strategic focus means our shareholder profile going forward will be people and institutions that have a profound understanding and great appetite for Africa and our business in Africa. The capital that we get will be more patient and more geared toward the development of Africa as a continent," Mushosho said.

"We are now truly a pan-African business which will grow harnessing the potential of Africa," he added.

On the JSE, Old Mutual Limited closed trading on Tuesday at R29,40; and £1,58 on the LSE.

- fingaz
Tags: Oldmutual,


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