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Old Mutual GI at the center of Aussie bid battle

Old Mutual GI at the center of Aussie bid battle

The Old Mutual investment business operated by fund manager Richard Buxton (pictured above) is at the centre of a £550 million ($726 million) bid battle between two Australian financial giants.

According to British news outlet, Sky News, Challenger and Macquarie Investment Management are among a small number of bidders for Old Mutual Global Investors, the UK investment arm of Old Mutual (OML) which runs some £25 billion ($33 billion) worth of assets.

Others interested parties TA Associates, the former private equity backer of Jupiter Fund Management (JUP). Rival private equity firms Hellman & Friedman and CVC Capital Partners have also been linked to potential bids.

Old Mutual, which has hired Goldman Sachs to advise on the sale, set a deadline of September 29 for interested parties to submit their bids. The sale is expected to complete before the year is out.

Last month chief executive Richard Buxton was put in charge of the single strategy arm while Paul Simpson was made responsible for the multi-asset business, which manages £16 billion ($21 billion). 

 The decision to put OMGI up for sale comes as the South African insurer proceeds with a broader plan to split itself into four separate companies.

In May this year, the South African insurer sold its majority stake in its US asset management arm, OM Asset Management, to Chinese firm HNA Capital for $446 million. Following the transaction, it’s 50.8% share was reduced to 25.9%.

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