Investec gets demerger nod


Investec gets demerger nod

Published Date: 2019-08-08 | Source: Stephen Gunnion | Author: Stephen Gunnion

Investec gets demerger nod

The group expects to list Investec Asset Management on the London and Johannesburg bourses in the first quarter of next year.

Investec expects to unbundle its asset management business and list it early next year after receiving regulatory approval.

In an update, the bank and asset manager said it had received all key regulatory approvals required to proceed with the demerger of Investec Asset Management (IAM), which will be separately listed on the JSE and the London Stock Exchange (LSE) using a dual-listed companies structure. It expects to list the business in the first quarter of next year, subject to the approval of Investec shareholders and other customary approvals. When the demerger was first announced last September, it had expected to list the business within a year. It said the demerger would simplify the group and enhance the long-term prospects and potential of both businesses, benefitting shareholders, clients and employees.

Investec shareholders will receive shares in IAM once it is independently listed instead of holding them through Investec. The group doesn't plan to raise capital through the demerger process. It envisaged a primary listing on the LSE with an inward listing on the JSE.

Once IAM is listed, Hendrik Du Toit will become CEO of the asset management business, while Fani Titi will continue as sole CEO of Investec's remaining specialist banking and wealth management businesses. Du Toit and Titi replaced Stephen Koseff as Joint CEOs last October.

Investec said a shareholder circular relating to the demerger would be published following the release of its financial results for the year to end-September.

Its Investec Limited shares closed 0.1% lower at R78.25 yesterday and its Investec plc shares were also 0.1% down at R78.17. The announcement was made after the close of trade.

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