London-based Quilter says it has agreed to sell its international business for £483m (R9.8bn) as it seeks to simplify its business and focus on the UK.
Quilter, listed in London and Johannesburg, is in the midst of positioning itself as one of the UK’s go-to shepherds of the super-rich’s money, saying on Thursday it expects the sale to improve its growth from 2022.
The sale to life assurance and wealth management group Utmost is expected to occur around the end of 2021, and is still subject to shareholder approval.
Quilter was hived off from Old Mutual in 2018 in a four-way break-up of the former financial services conglomerate.
The group said on Thursday it will be targeting net client cash flow growth of at least 6% of opening assets under management from the beginning of 2022, reflecting the exclusion of its lower growth international business.
Previously the group had a 5% growth target.
“Following a detailed strategic review, we are delighted to announce the proposed sale of Quilter International to Utmost, which represents an attractive valuation for our shareholders and an excellent outcome for all stakeholders,” said CEO Paul Feeney.
“It allows us to focus on accelerating our growth and efficiency plans as well as further simplifying and focusing our business around its core UK high-net-worth and affluent customer proposition,” Feeney said.
In morning trade, Quilter’s share was up 3.82% to R33.67, on track for its best day in just over a week. Quilter’s share has risen just more than 30% over the past 12 months.
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