Old Mutual lists in Zim

HARARE - Old Mutual Limited shares were yesterday listed on the Johannesburg Stock Exchange (JSE) with a secondary listing on the Zimbabwe Stock Exchange (ZSE), Nairobi Securities Exchange (NSX) and the Malawi Stock Exchange (MSE)

The listing replaces the listing of Old Mutual plc which has been split into four stand-alone, listed businesses, which include Old Mutual Limited.

Old Mutual plc had a primary listing on the London Stock Exchange and secondary listings on the JSE, the MSE, the NSX and the ZSE.

Old Mutual Zimbabwe Limited group chief executive Jonas Mushosho said the new unit, 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 premier 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.

“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 and OM asset Management.

“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

The origins of the Old Mutual date back to the founding of the South Africa Mutual Life Assurance Society in Cape Town in 1845. Over the century that followed, the company expanded into other African countries, including Zimbabwe in 1902.

Peter Moyo, chief executive officer of Old Mutual Limited, said in a statement that the listing would help create a business with a strong strategic focus on sub-Saharan Africa.

“Our investment case is strong and compelling. Our business remains highly cash-generative and is well-positioned in the right markets to drive added value from our franchises.

“Exciting opportunities lie ahead for us as Old Mutual Limited, and we look forward to delivering sustainable profit growth and returns for our shareholders, and making meaningful contributions to the societies in which we operate.

By driving long-term economic growth in Africa, we can positively impact the lives of all our customers and communities on the continent,” he said. — The Financial Gazette

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