South Africa’s fourth largest bank, Nedbank has cautioned over dealings in its shares following speculation that Old Mutual is planning to split itself up into standalone companies.<\/p>\n
On Saturday, Sky News reported that Old Mutual is working on a \u00a39 billion plan to break-up the company into standalone entities, comprising its stake in Nedbank\u201a its UK-focused wealth unit\u201a its emerging markets operation based in SA\u201a and its institutional asset management business.<\/p>\n
Old Mutual has a 40% holding in Nedbank, which boasts 7.4 million retail clients in South Africa.<\/p>\n
In a statement on Monday, Nedbank said: ‘Old Mutual and Nedbank have been engaging collaboratively as part of the ongoing strategic review being conducted by Old Mutual
\nunder its new chief executive.”<\/p>\n
The bank also referred to the following announcement released by Old Mutual\u00a0 on Monday 7 March 2016.<\/p>\n
\u201cOld Mutual plc (\u2018Old Mutual\u2019) notes the press speculation on Saturday 5 March 2016. When our new Chief Executive Bruce Hemphill joined on 1 November 2015, we announced that we would be conducting a strategic review.<\/p>\n
We can confirm that all options for the strategic review are being considered but no decision has yet been made.<\/p>\n
Old Mutual is due to announce its preliminary results for 2015 on 11 March 2016 and will provide an update on the strategic review at that time.\u201d<\/p><\/blockquote>\n
Nedbank advised its shareholders to exercise caution when dealing in Nedbank Group securities until an update on Old Mutual\u2019s strategic review is provided on 11 March, 2016.<\/p>\n
Shares in Nedbank declined 1% to R188.62 on the JSE in morning trade on Monday.<\/span><\/p>\n
Industry experts questioned whether Nedbank could become an acquisition target.<\/p>\n
Nedbank, which is the smallest of the big four SA banks, may find some interest from others, Economists.co.za chief economist Mike Schussler told Fin24 over the weekend<\/a>.<\/p>\n
\u201cI think the bank is a good bank, but the feeling is that they have not done enough in Africa. But all in all they would be an easier target than Barclays Africa which is much much bigger,\u201d he said.<\/p>\n
Last week, Barclays announced that it will be\u00a0selling down its stake in Barclays Africa Group Limited \u2013 trading as Absa in South Africa.<\/p>\n
More on banking in South Africa<\/h3>\n
Old Mutual split could trigger Nedbank sale<\/a><\/strong><\/p>\n
Barclays is selling off its stake in Absa \u2013 confirmed<\/a><\/strong><\/p>\n
Absa responds to Barclays sale reports<\/a><\/strong><\/p>\n