Quilter could nearly halve shareholder base during buyback

The company plans to spend about £30 million (about R623 million) to buying back shares. 

London-based Quilter, Old Mutual’s former wealth management business, plans to spend about £30 million (about R623 million) buying back shares from smaller shareholders to reduce costs.

Shareholders with fewer than 100 shares would be able to sell their stakes at a 5 percent premium, a move Quilter said could roughly halve the number of shareholders and reduce the complexity and cost of managing its shareholder base.

Quilter, which has a market capitalisation of R55 billion, also announced its results for the year to end-December on Wednesday, and intends to use the £375 million from its recent sale of Quilter Life Assurance to buy back its own shares.

The group reported adjusted profit before tax rose 1 percent to £235 million with the group reporting assets under management rose 13 percent to £110.4 billion during the period.

Quilter CEO Paul Feeney (Pictured) said on Wednesday the group was optimistic about its prospects, as the group was now a “highly scalable business with a broader range of solutions to meet clients needs”.

 Although 2020 had begun well, the coronavirus-induced market correction that began in February had created a high degree of uncertainty, he said.

“It is currently too early to ascertain what impact market volatility will have on investor sentiment, net client cash flow and the consequential impact this may have on revenues and profitability,” Paul said.