Old Mutual Wealth reaffirms float plans as report claims sale option on the table

Announced managed separation in March

Old Mutual has said plans to demerge and list its UK wealth arm are on track, despite media reports suggesting escalating platform costs may lead to a sale instead.

Bloomberg has reported a person familiar with the matter said South African parent Old Mutual may drop plans to list the UK wealth management unit separately, due to increasing costs involved in upgrading the division's investment platform. The website reported upgrades to the platform started in 2013, but the completion date has been delayed from 2016 until 2018, adding to costs which are now expected to be as much as £450m, instead of the £160m estimated three years ago. According to the source, while managers at Old Mutual Wealth want to proceed with an initial public offering, exe...