Old Mutual’s share price closed 13.2% lower to R14.20 yesterday in line with predictions that the price was likely to be volatile following the unbundling of a 12.2% stake in Nedbank.
Nedbank’s share price fell 2.27% to R175.99.
PSG Head of Equities Vaughn Henkel said recently that Nedbank had accounted for some 12.5% of the net asset value of Old Mutual, and on or around November 3 Old Mutual’s share price was likely to be volatile and may eventually settle anywhere between 10 and 13% lower once shareholders elected to participate in the unbundling.
In terms of the unbundling, the company’s shareholders will receive approximately 1.32954 Nedbank ordinary shares for every 100 Old Mutual ordinary shares held on the expected record date of November 5, 2021.
Henkel said Nedbank’s share price might also drop, as Old Mutual shareholders might sell the Nedbank shares they receive from the unbundling to buy more Old Mutual shares.
