Investec shares grow as it plans to demerge asset arm for London listing
Shares in South African banking group Investec flew up 10 per cent today as it revealed plans to spin off its asset management arm and list it in London.
Investec Asset Management (IAM) will be listed on the London Stock Exchange in a demerger Investec believes “simplifies the group”.
It will also have an inward listing on the Johannesburg Stock Exchange (JSE).
The bank itself, which is a keen sponsor of south hemisphere rugby, is listed in both London and Johannesburg.
IAM had £109bn funds under management at the end of August, working its way up from £40m when it started life in 1991, sporting an annual compound growth rate of 13.7 per cent for the last decade.
“As an independently listed company, IAM will be better positioned to accelerate its growth and have an enhanced ability to attract and retain investment talent,” Investec’s filing read.
If shareholders and regulators approve, the demerger is expected to complete in the next 12 months. JP Morgan Cazenove and Fenchurch Advisory Partners are advising on the transaction.
Investec will keep its minority stake in IAM, and will continue its dual listing on the LSE and JSE under the leadership of Fani Titi, while Hendrik du Toit will lead IAM.
In a joint statement they said: "We are confident that the proposed demerger and listing of IAM provides the simplicity of structure and focus to enhance the long-term prospects of IAM and the remaining group for the benefit of our shareholders, clients and employees.
“Investec has a heritage and culture of which we are proud, shaped by the dedication and commitment of our employees and the support of our clients.
“We look forward to working closely as joint group chief executives during this phase of our evolution and to implement this transaction, which we expect will create significant shareholder value over time."