Old Mutual Wants to Sell Nedbank

August 15 - The Chief Executive Officer of Old Mutual, Julian Roberts, said that his group is committed to selling its majority stake in Nedbank when the time is right.

Speaking to Reuters in an interview, the CEO said that the group has also not ruled out the option of getting rid of smaller stakes before the end of the year to reduce its debt.

"At some time in the future, I would like us not to have that banking exposure," said Roberts.

"For Old Mutual shareholders, we are not bankers, we are insurance people."

Asked if he was concerned about Old Mutual having banking exposure now, Roberts said that he was not. "No, because it's an extremely good bank and it's growing well," he said.

Last year, Old Mutual nearly reached a deal with HSBC to sell a 52% stake in Nedbank, however the $8 billion contract fell through.  This meant that Old Mutual was unable to fully focus on its plans to strengthen its insurance arm, and it was felt in the share prices.

Satisfied with Pace

Roberts, who joined Old Mutual in 2008 to oversee a major overhaul, declared that he was as committed as ever to turning the company around.

"I've got a substantial restructuring agenda that I'm looking to do to get this group into a shape where I believe it is worth a premium and not a discount," he said.

Reuters asked Roberts if it was realistic to expect the group to reach its target to pay back a £1.5 billion debt by the end of next year without more disposals.

He replied: "I'm not saying that. We've effectively laid out £ 1.2 billion of how we're going to get there. There's an extra 300 million and we're going to give no indication whatsoever of where that money will come from."