Old Mutual sells $446 million stake in US asset management arm

Old Mutual has agreed to sell minority stake in OM Asset Management to HNA Capital US.

Old Mutual has agreed to sell almost a quarter of their stake in its OM Asset Management business to China’s HNA Capital US for the sum of $446 million.

The two-step transaction will see Old Mutual’s shareholding in the buy-side business reduce from 50.8% to 25.9%.

OM Asset Management is a US-based multi-boutique business with roughly $240 billion of assets under management.

Two nominated directors from HNA Capital US will join the OM Asset Management board on completion of the transaction.

Bruce Hemphill, group chief executive of Old Mutual, explained the deal brings forward further realisation of value and represents another step in its separation strategy.

The group will continue to ‘sell its remaining stake in OM Asset Management in an orderly manner’, the firm said.

James Ritchie, chairman of OM Asset Management's board of directors, added it will continue to execute its growth strategy which includes working with its investors to expand its global footprint.

The transaction is expected to close in the second half of this year and Old Mutual plans to use the funds raised for ‘general corporate purposes’.