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Investec to raise £189 mn with its asset management demerger

Investec Asset Management

Investec Asset Management will become a separate unit known as Ninety One after the demerger in January 2020

South Africa’s Investec expects to raise £189 million with the 10 percent sale of Investec Asset Management. It plans to demerge Investment Asset Management to largely focus on the unit’s core functions, away from Investec banking and wealth operations. 

With that, Investment Asset Management will be rebranded and known as Ninety One. The new unit will be listed in both London and Johannesburg, the local media reported. Currently, Investec manages nearly £119 billion in assets.

Investec Asset Management demerger will take place in January 2020, depending on shareholder approval. Investment Asset Management was established as a startup in 1991 in South Africa. 

Joint Chief Executive Fani Titi, told the local media that, “Shareholders will benefit from direct ownership of two attractive, independent businesses with management teams focused on long-term growth and value creation.” 

Investec shareholders will hold 55.9 percent of Ninety One Plc and 53.1 percent of Ninety One Ltd. The share sale proceeds will be retained by Investec to strengthen its banking and wealth management divisions.

According to the firm, the share sale proceeds will be based on Ninety One’s valuation at £1.89 billion as of October 25, 2019. However, the amount of the actual proceeds will be decided at the time of demerger next year. 

The name Investor Asset Management will no longer exist after the demerger takes place. It will be officially rebranded as Ninety One —reflecting the establishment of Investment Asset Management in 1991.  

Investec is a Anglo-South African financial services firm. It is headquartered in Sandown. 

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