Old Mutual kicks off float of U.S. asset management arm
LONDON, June 30
LONDON, June 30 (Reuters) - Insurer Old Mutual said on Monday it had kicked off a planned listing of its U.S. asset management business.
The move will give the company access to U.S. capital markets as it looks to expand in the country, the world's biggest asset management market, including through acquisition, a spokesman said.
Old Mutual will cut its stake in the asset manager through the listing but the size of the holding it will sell has yet to be determined, the spokesman said.
The new entity, to be called Old Mutual Asset Management, will pay its parent company a pre-IPO special dividend of $175 million, according to documents filed with the U.S. Securities and Exchange Commission.
The unit had net client cash flows of $2.4 billion between April 1 and May 31, the filing said, which took assets under management to $210.1 billion, up 3 percent from the end of March. (Reporting by Simon Jessop; Editing by Steve Slater)