JOHANNESBURG, June (ANA) - The listing of Old Mutual Limited on the Johannesburg Stock Exchange (JSE) on Tuesday has been welcomed as a great vote of confidence in South African at a time when the economy is facing serious challenges relating to low growth and high employment rate.
Financial services firm Old Mutual plc listed its African financial services, Old Mutual Limited, as a stand-alone unit in the JSE on Tuesday, finally completing its break up plan and returning to its roots as a South African-based group.
Its primary listing is now on the JSE, with a standard listing on the London Stock Exchange, and secondary listings on Malawi, Namibia and Zimbabwe stock exchanges. The firm said that there would be no involuntary job losses as a result of the corporate restructuring.
Sibongiseni Mbatha. president of the Association of Black Securities and Investment Professionals (ABSIP), said the listing of Old Mutual Limited as a stand-alone Africa-focused entity across several African bourses would help the transformation of the financial services sector.
“We welcome back the 173-year-old company as it hives off its businesses after determining that they would be worth more on their own and its listing to house African insurance and asset-management units that will culminate with the unbundling of Nedbank in about six months," Mbatha said.
Dennis George, general secretary of the Federation of Unions of South Africa (Fedusa), said this listing was important for the South African economy.
"This listing will boost confidence in the South African economy, strengthen the investment goal that was set by President Ramaphosa and contribute greatly to job creation," George said.
In 2016, Old Mutual plc announced a "managed separation" involving the unbundling of the group into four separate entities - Old Mutual Emerging Markets, the Nedbank Group, Old Mutual Wealth, and Old Mutual Asset Management – in a bid to unlock and create value for shareholders.
- African News Agency (ANA)
