Investec split planned for March

The company is spinning off its asset-management unit, which will be known as Ninety One.

Financial services group Investec will sell about 10 percent of its asset management business, to be renamed Ninety One, when it is spun off as part of a demerger expected in March. 

Investec announced the structural overhaul last year in a move intended to strengthen the asset management business and Investec’s remaining banking and wealth operations. 

In an update published on Friday, Investec said it plans to sell about 10 percent of Ninety One, which will be split between London and Johannesburg under a dual-listing. 

Following the transaction, Investec expects about 55 percent of Ninety One to be held by existing shareholders, with 15 percent being retained by Investec and 20 percent being held by Forty Two Point, the investment vehicle through which the management and directors participate in the business. 

The demerger, which requires shareholder approval, is expected to take place on March 13, it said. Investec had first announced the demerger plan in September 2018, maintaining it will simplify the businesses and enhance their long-term prospects.

“We continue to make good progress with respect to the proposed demerger and listing of Ninety One,” said joint CEOs Fani Titi (pictured) and Hendrik du Toit in the statement.

“We remain excited about the benefits of this transaction and are determined to drive simplification across the group, focusing on enhancing the long-term prospects of Ninety One and Investec Bank and Wealth for the benefit of all our stakeholders,” the CEOs said.