Investec shareholders back Ninety One listing


Investec shareholders back Ninety One listing

Published Date: 2020-02-11 | Source: Stephen Gunnion | Author: Stephen Gunnion

Investec shareholders back Ninety One listing

The shareholder vote paves the way for Ninety One to demerge from Investec on 13 March and list three days later.

Investec shareholders have voted overwhelmingly in favour of its proposal to list its asset management business separately and unbundle shares to investors.

At general meetings of Investec Plc and Investec Limited yesterday, shareholders representing more than 90% of the financial services group stock backed the proposal. If the scheme is sanctioned by the court in the UK, it is expected to become effective on 13 March, with the renamed Ninety One listing on the London Stock Exchange's Main Market on 16 March. It will have a secondary listing on the JSE.

Last week, Investec said Ninety One Group had continued its trend of operating profit growth since the end of its first half, with higher pound sterling assets under management (AUM) and positive net inflows for the three months to end-December. At the end of September, it reported AUM of £121 billion. About two-thirds of AUM are managed on behalf of non-SA clients.

Investec said the global offer and admission would allow Ninety One to operate as an independent business, benefiting clients, employees and shareholders. Employees would retain a stake in the business, which it said would align the organisation and its staff for long-term success, while creating a suitable structure for attracting and retaining talent.

Investec Group will hold about 15% of Ninety One's shares, with shareholders of Investec Plc and Investec Limited owning about 55%. A further 20% will be held by employees and the remaining 10% will be sold to new investors.

Immediately following admission, Ninety One said it intended to have a free float of 60-65% of its issued share capital and expected to be be eligible for inclusion in the FTSE and JSE indices.

Shareholders will receive one Ninety One share for every two Investec shares held. They will also receive dividends from both companies from the financial year ending March 2021.

Investec Plc's shares fell 0.6% to R84.25 yesterday while Limited's shares declined 0.3% to R86.

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