April 20, 2018 / 3:40 PM / in a year

Old Mutual to list emerging market, UK fund units in June

* Company to split into two in June

* UK wealth arm to list as Quilter

* Rest to have primary list in South Africa

By Carolyn Cohn and Simon Jessop

LONDON, April 20 (Reuters) - Old Mutual said on Friday that the next stage of a planned break-up of the company would take place in June with the listing of its asset management and emerging market units.

The listings will see shareholders receive one share in new UK wealth management company Quilter and three in Old Mutual Limited for every three Old Mutual shares currently held.

The Anglo-South African financial services group has been working towards a break-up since 2016 after deciding that regulatory changes had made the firm too complex to run, and has already sold out of its U.S. fund arm.

The next stage will see its Old Mutual Wealth unit spun out and renamed Quilter, with a listing in London and Johannesburg, while the rest of the company, which includes its emerging markets unit, will list a day later in Johannesburg and London as Old Mutual Limited.

Under the Quilter demerger, existing Old Mutual shareholders will receive 86.6 percent of Quilter and up to 9.6 percent will be placed with institutional investors. The rest would be held on behalf of management and staff.

The fourth step of the company’s break-up plan will take place six months later and see Old Mutual Limited separate out its stake in South African lender Nedbank, by distributing 32 percent of Nedbank’s stock to Old Mutual Limited shareholders.

After that, Old Mutual Limited will retain a minority stale of 19.9 percent in Nedbank, it said.

The Old Mutual break-up comes as other insurers and asset managers such as Prudential and Standard Life Aberdeen are also changing their structures to become more competitive.

The plan also follows an agreement by Old Mutual to sell part of its asset management arm, Old Mutual Global Investors, to private equity firm TA Associates and management for 600 million pounds.

Bernstein analysts valued Old Mutual Wealth at 2.8 billion pounds excluding Old Mutual Global Investors. (Reporting by Simon Jessop)

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