Dual-listed bank and asset management group Investec has decided to de-merge and publicly list its £109bn (€121bn) asset management arm, it announced this morning.
The decision followed a strategic review of the group, which showed there were “compelling current and potential linkages” between the group’s specialist banking and wealth and investment businesses, but limited synergies between these and the asset management business.
The de-merger and listing of Investec Asset Management (IAM) simplified the group structure and focussed IAM and the remaining group “on their respective growth paths”, the group said in a statement.
Hendrik du Toit, joint Investec group CEO designate with Fani Titi, would take the helm of IAM once it was spun off and public, while Titi would lead the remaining group.
IAM management would retain its stake in the company and the remaining group may retain a minority stake in the asset manager. After implementation of the transaction, shareholders of Investec Group would have a direct shareholding in IAM in addition to their holding in the remaining group, the group said.
The current plan was for IAM to be listed on the London Stock Exchange with an “inward listing” on the Johannesburg Stock Exchange, which would mirror Investec group’s dual listing.
The “precise mechanics” of the de-merger and listing would be communicated in due course, the group said.
Stephen Koseff, CEO and Bernard Kantor, managing director, said: “It is now the right time to demerge and list our asset management business to support it in the next phase of its development.
“In recent years we have also made good progress in expanding our banking and wealth management franchises in our two key markets and improving their operational and financial performance.
“We believe the transaction will allow these businesses to fulfil their full potential and shareholders will benefit from future value creation through direct ownership of two separately listed companies.”