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Old Mutual Ltd said on Friday it will immediately start its R 3 billion share buyback in an attempt to erase the discount in its share price. This comes after shareholders late in May gave the Anglo-South African financial services firm the go-ahead to repurchase up to 10% of its issued shares. Shares in Old Mutual shares were down 0.9% to R 12.70 on Friday afternoon in Johannesburg, while they were down 1.1% at 55.00 pence in London. Old Mutual has a market capitalisation of around R 60.33 billion. On Friday, the company said it will implement the share repurchase of about 220 million shares for around R 3 billion from Friday until the approved authorised limit is reached or ‘for as long as the programme remains value accretive to shareholders’. The group said it has obtained the necessary regulatory approval from the Prudential Authority in South Africa, and stressed that its latest share will take place on the Johannesburg Stock Exchange only. Old Mutual said it believes that its shares are trading at a discount to its intrinsic value and is of the view that a repurchase programme will deliver ‘longer term incremental value’ to its shareholders. Late in January, Old Mutual completed another share buyback plan that saw it repurchase 78.0 million shares. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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