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Investec to seek UK court approval over Ninety One distribution plan

21st Feb 2022 09:06

(Alliance News) - Investec PLC and Ltd announced on Monday a court meeting in the UK to approve its plan to distribute a portion of the stake it holds in money manager Ninety One PLC and Ltd ,which will be held in March.

The Anglo-South African financial services group plans to distribute a 15% holding in Ninety One to its shareholders in term of a proposal which first surfaced in November. It will retain around a 10% share.

Investec said the court meeting will be heard before a high court judge in London on March 15.

The court will be determined whether, for the purposes of voting at the court meeting, Investec PLC UK-registered shareholders and Investec PLC South African-registered shareholders should be treated as a single class in which case they would vote together in one meeting or as separate classes.

Investec has structured this transaction as a return of capital by Investec PLC to Investec PLC UK-registered shareholders, and as a distribution in specie by Investec Ltd to Investec PLC South African-registered shareholders and to Investec Ltd shareholders.

Under the UK companies laws, the distribution must be approved by a majority, representing 75% by value, of Investec PLC shareholders and voting at a shareholder meeting convened with the permission of the high court in England and Wales.

Given its strong capital generation and capital optimisation strategy, Investec has considered a number of different ways of effecting the distribution.

In South Africa, Investec PLC shares were down 0.3% at ZAR86.29, while Ltd shares were flat at ZAR88.20. Ninety One's shares were 0.7% higher at ZAR53.33.

Meanwhile in London, Investec shares were down 1.5% at 416.80 pence, while Ninety One's shares were 0.5% lower at 257.20p.

By Artwell Dlamini; [email protected]

Copyright 2022 Alliance News Limited. All Rights Reserved.


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