Investec to demerge asset management unit in March 2020

Investec said it would complete the demerger of its asset management arm by 13 March, rename it Ninety One and sell 10% of shares in the new unit.

Investec plans to list the fund business in London and Johannesburg, as part of a restructuring of the financial services company announced last year.

The demerger still needs to be signed off by Investec Plc and Investec Ltd shareholders as the company looks to simplify its banking, wealth and investment units.

In an update, Investec said the capital ratio of Investec Plc should improve by 1.3 percentage points to 12%, while Investec Ltd's ratio will improve to 12.3% following the demerger.

The company added that its shareholders should benefit from value creation through ownership of two separate businesses, with Investec Bank and Wealth having committed to delivering a 12% - 16% improvement in returns on equity by the financial year ending 31 March 2022.

Joint chief executives Fani Titi and Hendrik du Toit said: "We continue to make good progress with respect to the proposed demerger and listing of Ninety One. We remain excited about the benefits of this transaction and are determined to drive simplification across the group, focusing on enhancing the long-term prospects of Ninety One and Investec Bank and Wealth for the benefit of all our stakeholders."

Investec shares were down by 2.25% at 437.90p at 0833 GMT.