Old Mutual is ready to sell up to $200 million worth of stock in its U.S. asset management business.
The Boston-based Old Mutual Asset Management arm launched on the NYSE in October at $14 a share, a $1.86 billion valuation, reports the Financial Times. The stock has rallied since then, closing at $18.99 Monday. OMAM, a multi-boutique manager, has been reportedly looking for acquisitions to add to its stable, but sales from a new public offering wouldn’t fund the U.S. business. Proceeds would go to the Old Mutual parent for “general corporate purposes.”
OMAM’s IPO raised $308 million for Old Mutual last year, and sold off 18% of the business. Old Mutual sold an additional 3% later, leaving it with a 79% holding. Analysts expect the firm to rid itself of its remaining shares in the coming years.
Photo: omam.com.