Old Mutual says it has received approaches for stake in OMAM

Old Mutual confirmed on Tuesday that it has received approaches from third parties to acquire its 66% stake in OM Asset Management (OMAM), and that it is continuing to assess its options with regard to the preferred route to effect the managed separation announced in March.

“As a consequence of the decision to proceed with the managed separation of Old Mutual, we expect to receive interest in our assets periodically,” said Old Mutual, adding that it would update the market as and when appropriate.

The financial services company said there could be no certainty the approaches for its stake in OMAM would lead to any transaction or any certainty as to the terms on which any such transaction might proceed.

The statement followed a report earlier in the Financial Times suggesting the company was close to a deal to sell its US asset management business to New York-based asset management firm Affiliated Managers Group as part of its restructuring plan.

It was understood Old Mutual’s board had endorsed the transaction, which would be a cash and share deal. In exchange for its stake in OMAM, valued at about $1bn, the remaining Old Mutual group would receive cash and a 10% stake in AMG, the FT cited people familiar with the plans as saying.

Old Mutual would use the cash to pay down debt at its UK operations.