Investment firm Old Mutual is floating its fund management arm on the stock market as it breaks up the business.
The Anglo-South African company will list Old Mutual Wealth in London and Johannesburg with a price tag of £3billion, after this year’s results are unveiled in 2018.
A South African insurance firm will also be spun off as a public company.
Old Mutual is splitting up as a result of global regulation changes which mean its business is too complex to manage.
The plan is the brainchild of chief executive Bruce Hemphill, who will pocket up to £9million if it goes ahead.
It follows a flurry of activity in the investment industry as firms face tougher rules and more competition from cheaper stock market-linked funds.
Rivals Standard Life and Aberdeen Asset Management are joining forces in an £11billion tie-up.
This week, Prudential said it was combining its UK life insurance operation with its investment business M&G .
Old Mutual yesterday revealed a half-year profit of £969million, up 37 per cent on the same period in 2016.
It hiked the interim dividend by 32 per cent to 3.53p. Shares fell 3.1 per cent, or 6.2p, to 195.3p.
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