Old Mutual has entered into exclusive talks with European private equity fund Cinven, the owner of ERGO Italia, for the sale of Old Mutual Wealth Italy.
The Italian wealth business, owned by Old Mutual Wealth, was put up for sale earlier in 2016. The Italian unit represents less than 5% of Old Mutual’s global wealth management operations.
However, Old Mutual stressed in a statement to the London Stock Exchange that “there can be no certainty that these negotiations will lead to any transaction”.
The latest move comes as Old Mutual plans to break up into four businesses, namely Old Mutual Wealth based in the UK; Old Mutual Emerging Markets based in South Africa; Old Mutual Asset Management based in the US; and Nedbank.
As part of the restructuring, Old Mutual announced plans to demerge its wealth unit and list it on the London stock exchange in June 2016.
The group will create a new South African holding company for its emerging markets business. It also plans to spin off a portion its stake in Nedbank to investors, and continue the phased reduction of its 65.8% stake in Old Mutual Asset Management.