The Old Mutual headquarters in Johannesburg, South Africa.
Beijing : Chinese conglomerate HNA Group Co. agreed to buy a 25 percent stake in Old Mutual Plc’s US asset management unit for about $446m, adding to a $30bn spending spree since last year.
Old Mutual is selling down its holdings in OM Asset Management to HNA Group in two tranches, according to an emailed statement yesterday from the London-based company. The first -- comprising 9.95 percent at $15.30 per share -- will be completed within 30 days, with a second 15 percent stake at $15.75 taking place in the second half, the company said.
The Hainan-based conglomerate has been investing in financial services as it seeks to broaden its portfolio beyond tourism and aviation. In the first quarter, it bought a $200m stake in SkyBridge Capital, agreed to acquire assets from Australia & New Zealand Banking Group Ltd. and became one of the largest shareholders in Deutsche Bank AG.
Old Mutual is also undertaking a transformation, preparing to break up its wealth, US asset management business, emerging-markets unit and Johannesburg-based lender Nedbank into standalone entities by the end of 2018. The split is the culmination of a strategic review started by Chief Executive Officer Bruce Hemphill in November as he seeks to boost profitability and a share price that’s trailed peers.
After the transactions with HNA, Old Mutual’s holding of OM Asset Management will drop to about 26 percent, from about 51 percent now, it said.
Two directors from the Chinese company’s HNA Capital US unit will join Old Mutual Asset Management’s board as part of the deal. OM Asset Management has about $240bn of assets under management.
The company controlled by billionaire Chen Feng last year also bought stakes in hotel operator Hilton Worldwide Holdings Inc. and electronics distributor Ingram Micro Inc.
HNA Group is leading a deal to acquire Manhattan’s 245 Park Ave. for $2.21bn, one of the highest prices paid for a New York skyscraper.
