China's HNA To Buy $446 Mln Stake In Old Mutual's OMAM

(RTTNews) - Old Mutual plc announced that it has agreed to sell a 24.95% shareholding in OM Asset Management plc (OMAM) to China's HNA Capital US in a two-step transaction for gross cash consideration of about $446 million.

The company said that the first tranche comprises a sale of a 9.95% tranche of OMAM shares held by Old Mutual at a price of $15.30 per share and the completion is expected to take place in approximately 30 days

In the second step, the company announced a sale of further 15% at $15.75 per share and expected to take close in the second half of 2017.

Following transaction, Old Mutual's shareholding will reduce from 50.8% to 25.9%. Old Mutual said that it will use the proceeds from the transaction for general corporate purposes.

It is expected that one HNA Capital US-nominated director will join the OMAM board on the completion of the first tranche of 9.95% of OMAM shares and a second on the completion of the second tranche of 15% of OMAM shares. In both cases, these directors will replace existing nominees of Old Mutual.

Bank of America Merrill Lynch and Evercore acted as joint financial advisors and Skadden Arps and Linklaters as legal advisors to Old Mutual in connection with the transaction.