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Investec to distribute 15% NinetyOne stake to shareholders

Investec to distribute 15% NinetyOne stake to shareholders
Investec to distribute 15% NinetyOne stake to shareholders   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p><span class="caps">JOHANNESBURG</span> -South Africa’s Investec said on Thursday it would distribute a 15% stake in asset manager NinetyOne to shareholders, as it also reported a more than two-fold rise in half-year profit. </p> <p>The financial services group spun off its asset management business and listed it as NinetyOne in London in 2020, but abandoned a plan to sell a 10% stake in the company as the <span class="caps">COVID</span>-19 pandemic roiled stock markets. It holds a 25% stake in the company. </p> <p>Chief executive Fani Titi said the 15% stake it had planned to retain from the outset was always surplus to its capital requirements and would be returned to shareholders at some point. </p> <p>“Given we’ve now largely gone through <span class="caps">COVID</span>, economies are beginning to recover… we believe it’s appropriate for us to return the 15%,” he said, adding group earnings were back to pre-<span class="caps">COVID</span> levels and it was also generating a lot of capital. </p> <p>Investec said it would announce the terms and process for the distribution later, while Titi added that the company still intended to review whether to turn its remaining 10% NinetyOne stake into cash at some point in the future. </p> <p>Investec also reported a more than two-fold rise in half year profits, with the final result hitting around the middle of a recently improved forecast range, and announced an interim dividend of 11 pence per share.</p> <p>For the six months to Sept. 30, its adjusted earnings per share (<span class="caps">AEPS</span>), which reflect profits made in the course of ordinary operations, stood at 26.3 pence, compared to 11.2 pence a year earlier.</p> <p>Based on its performance, the group also updated its annual guidance. It now expects <span class="caps">AEPS</span> of between 48 pence and 53 pence for the full-year, compared to a May 2021 forecast of between 36 pence and 41 pence. </p> <p>Its Johannesburg-listed shares were down 0.36% by 0811 <span class="caps">GMT</span>. </p> </div>