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Investec removes 10% share offer in Ninety One

Africa Global Funds
March 17, 2020, 10:05 p.m.
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In light of the recent volatile market conditions, the boards of Investec have decided not to pursue the global offer of approximately 10% of the combined total issued share capital of Ninety One.

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In light of the recent volatile market conditions, the boards of Investec have decided not to pursue the global offer of approximately 10% of the combined total issued share capital of Ninety One.

Investec will proceed with the proposed Demerger and public listing of Ninety One as planned and will remain a shareholder in Ninety One, with approximately a 25% shareholding. 

Hendrik du Toit, Joint CEO of Investec and CEO of Ninety One, said: "The demerger is progressing in line with the published timetable. On Monday we start an exciting new phase as an independently-listed company. Despite the recent market dislocation, we have been encouraged by the support from our shareholders and potential investors.”

”We are confident in the resilience of our capital-light business model and its organically developed, specialist, active investment offerings. Ours is a long-term story of a unique business with a carefully-developed culture, a commitment to employee ownership and a long track record."

Admission of both Ninety One plc and Ninety One took place on March 16, 2020, where each Investec Ordinary Shareholder will own one Ninety One Share for every two Investec ordinary shares held.

Investec's entire holding of Ninety One Shares will be subject to a lock up for a period of 180 days from the date of Admission and otherwise on the same terms as the original lock-up provided for in the Underwriting Agreement as summarised in the Prospectus.

Fani Titi, Joint CEO of Investec, commented: "The completion of the demerger will mark an important milestone for Investec. It enables us to continue our drive towards simplification, focus and growth. Meanwhile Ninety One embarks on the next phase of its own journey. Investec shareholders will benefit from their direct ownership of these two companies and their individual potential for long-term growth and value creation.”

“Market conditions have proved particularly challenging in the recent two weeks and, while we were encouraged by the strength and quality of investor engagement in relation to the Global Offer, we have decided to retain our shareholding in Ninety One. Importantly, the financial benefits of the demerger remain. Ninety One is an excellent company, with an exceptional management team, and we have great confidence in its prospects as an independently-listed firm.”

 

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