Workers clean windows outside the Cape Town headquarters of Anglo-South African financial services company Old Mutual.

Johannesburg - Old Mutual is selling its 26 percent stake in India-based in Kotak Mahindra.

It says it is selling the stake to its joint venture partner Kotak Mahindra Bank for £156 million.

Old Mutual, which is in the middle of a split, says the net proceeds of £141 million will be for general corporate purposes.

When the split is complete, the group will be separated into Old Mutual Wealth (UK); Old Mutual Emerging Markets (South Africa); Old Mutual Asset Management (US) and Nedbank.

The split was set in motion when Old Mutual announced in August the sale of Old Mutual Wealth Italy by entering into a short period of negotiations with Cinven, the owner of Ergo Italia.

The deal, subject to Indian regulatory approvals, is expected to complete in the second half of 2017.

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As at December 2016, the carrying value in Old Mutual’s consolidated financial statements of its stake in the joint venture was £45 million.

Old Mutual adds the conclusion of the transaction will also terminate the joint venture arrangement, including the respective put and call option arrangements between the parties relating to a 23 percent stake in the joint venture.

Rothschild acted as financial adviser to Old Mutual in connection with the transaction.

BUSINESS REPORT ONLINE