South African financial services and insurance giant Old Mutual plc said on Wednesday it had hoped to make an announcement on a black economic empowerment (BEE) deal before the end of this year but will have to postpone this until next year.
“We’ve been a bit optimistic and were hoping to announce a BEE deal before the end of the year. But it’s complicated trying to pull this all through, so we won’t be able to make an announcement this year.
“The complexity of putting these deals together has lengthened the process, and we now only expect to make a detailed announcement on our empowerment ownership plans next year,” the group’s financial director, Julian Roberts, told a teleconference.
However, he said Old Mutual, which is listed in both London and Johannesburg, is making progress in its discussions with a “number of potential BEE partners”.
“During the quarter, we have continued to develop our transformation strategy to take account of the South African Financial Sector Charter. We are seeking broad-based BEE ownership deals for Old Mutual (South Africa), Mutual & Federal and Nedcor that will help to build each business, be broad-based, include staff participation and create value for all stakeholders over the long term,” Roberts added.
Nedcor is the group’s South African banking subsidiary, while Mutual & Federal, in which it holds the controlling stake, is the country’s second-biggest short-term insurer.
Roberts also said acquisitive growth remains part of Old Mutual’s strategy but there is nothing on the horizon yet as far as acquisitions are concerned.
“I’ve got nothing new to say on the acquisition front. It is still a key strategy for us and we are pursuing acquisitions. But there is nothing on the cards in the immediate future as far as acquisitions are concerned,” Roberts said. — I-Net Bridge