Financial giant Old Mutual is finalising secret plans to break itself apart after receiving a takeover approach for its wealth management arm.
Buyout firms Cinven and Warburg Pincus are said to have tabled a bid worth several billion pounds for Old Mutual Wealth. The division includes investment manager Quilter Cheviot and its funds business, which is home to renowned stock picker Richard Buxton .
The approach, first reported by Sky News, could herald a break-up of Old Mutual. It was founded in Cape Town in 1845 and now spans Africa, America and Europe.
The shares closed at 179.7p last week, giving the company a market value of almost £9bn. Many bankers think it would be worth more if broken up, as there is little overlap between between its disparate divisions.
In addition to its prized UK wealth business, Old Mutual has a large stake in Nedbank, one of South Africa’s biggest lenders, an emerging markets division and an international asset management business.