One of the South African financial groups claimed that Investec is going to be spinning off its asset management division to follow a strategic review of its very own business.
The Investec Asset Management that is known to oversee around 109bn pounds across the UK, Australia, US, and South Africa is going to be listed on both the Johannesburg and London.
This particular decision is taken after Investec did find out that there is a little bit of synergy between the management division along with banking and investment business.
Hendrik du Toit is going to be leading the fund management arm following the listing. He is supposed to be the chief executive of the Investec Asset Management.
The managers of Investec are going to be holding a certain stake in the listed business as well. The wider Investec group is going to hold a minority holding on the other hand.
The CEO of Investec, Mr. Stephen Koseff and Mr. Bernard Kantor who is the managing director states that their individual businesses are in a good position speaking strategically. The businesses do have good prospect along with strong market positions. It is the perfect time to demerge and list out the asset management business which is there to support it during the next phase of the development.
The shares in London of Investec are trading at 8 percent higher as of this morning after the announcement.