China’s HNA pays US$446 million for stake in Old Mutual’s US unit

Chinese conglomerate HNA Group agreed to buy a 25 per cent stake in Old Mutual’s US asset management unit for about US$446 million, adding to a US$30 billion spending spree since last year.

Old Mutual is selling down its holdings in OM Asset Management to HNA in two tranches, according to a statement from the London-based company on Sunday.

The first, comprising 9.95 per cent at US$15.30 per share, would be completed within 30 days, with a second 15 per cent stake at US$15.75 taking place in the second half, the company said.

The Hainan-based conglomerate has been investing in financial services as it seeks to broaden its portfolio beyond tourism and aviation. In the first quarter, it bought a US$200 million stake in SkyBridge Capital, agreed to acquire assets from Australia & New Zealand Banking Group and became one of the largest shareholders in Deutsche Bank.

Old Mutual is also undertaking a transformation, preparing to break up its wealth, US asset management business, emerging-markets unit and Johannesburg-based lender Nedbank into standalone entities by the end of 2018.

The split is the culmination of a strategic review started by chief executive Bruce Hemphill in November as he seeks to boost profitability and a share price that has trailed peers.