Old Mutual Asset Management prices at $14.24 per share

14th Dec 2016 07:15

(ShareCast News) - After announcing that it is to float two thirds of the asset management business on Tuesday, Old Mutual confirmed it will sell the initial 13m shares at $14.24 in a public offering expected to close on 19 December.The FTSE 100 company said in March it will split into four parts by the end of 2018 to save costs.The public offering is brokered by Bank of America Merrill Lynch, Morgan Stanley, Citi, Credit Suisse and Evercore, while the underwriters have a 30-day option to buy an additional 1.95m shares.The bank previously said it will continue to reduce its holdings in the asset management business in a way that balances "value, cost, time and risk".The public offering is subject to a registration statement from the US Securities and Exchange Commission and a preliminary prospectus supplement has been filed with the SEC.In addition, Old Mutual Asset Management is to repurchase 6m shares directly from OM Group also priced at $14.25 per share, subject to various conditions.