OMAM OM Asset Management Plc Ordinary Shares (delisted)

By Ian Walker 

LONDON-- Old Mutual PLC on Tuesday said it has received a number of approaches from third parties to buy its stake in OM Asset Management PLC, as the financial services group explores ways to separate its four main businesses.

The company announced in March that it planned a breakup of its different divisions--Old Mutual Emerging Markets, Old Mutual Wealth, Nedbank and OM Asset Management--and it said Tuesday that it continues to assess its options. It previously said it expected the separation to be largely complete by the end of 2018.

Old Mutual, which was responding to media reports, didn't detail who it had received approaches from and cautioned there was no certainty a deal would be agreed.

The Financial Times on Tuesday reported that Old Mutual was close to a deal to sell its U.S. asset-management business to New York-listed Affiliated Managers Group for about $1 billion. The FT report, citing two people familiar with the plans, said Old Mutual's board had endorsed a sale of its 66% stake in Old Mutual Asset Management in exchange for cash and a 10% stake in AMG.

Old Mutual is exploring a breakup as it faces slowing economic growth and volatile exchange rates. Chief Executive Bruce Hemphill said in March that the strategy would allow each business to have simpler access to capital markets to fund growth more easily. A breakup would also allow the separate divisions to be valued more appropriately and have more straight forward regulatory arrangements, he added.

Old Mutual, which was established in 1845, provides investment, savings, insurance and banking services to more than 17 million customers in Africa, the Americas, Asia and Europe. The company has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

May 24, 2016 03:30 ET (07:30 GMT)

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