Financial services group Old Mutual Plc (OML.L) said it would sell 13 million shares in its OM Asset Management Plc (OMAM.N) arm through a public offering, as the group prepares to split into its four main businesses.
The proposed split was revealed in March as regulatory changes in Europe and South Africa have made Old Mutual, which started out in 1845 as a life insurance firm in Cape Town, more complex to run in its current form.
"Old Mutual intends to continue the reduction of its holdings in OMAM in an orderly manner which balances value, cost, time and risk," the company said on Tuesday.
OM Asset Management (OMAM) said it had agreed to repurchase 6 million ordinary shares from OM Group (UK) Ltd, a unit of Old Mutual.
BofA Merrill Lynch, Morgan Stanley & Co LLC, Citigroup, Credit Suisse Securities (USA) LLC and Evercore ISI are joint bookrunners for the offering.
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Gopakumar Warrier)