Quilter launches odd-lot offer for its minority shareholders
DURBAN - Quilter plc said yesterday that it had launched an odd-lot offer for shareholders holding less than 100 ordinary shares in the wealth management business to sell their shares at a 5percent premium to the market price.
The group was granted authority by its shareholders in last year’s annual general meeting that was held in May to make the odd-lot offer within the 18-month period.
Chief executive Paul Feeney said the history of the company, which includes the original demutualisation and listing of Old Mutual plc in 1999 and the managed separation in 2018 had resulted in it having an unusually large number of small shareholders for a company of its size.
“Shareholders that are holding less than 100 of Quilter’s shares have not performed any trades since they acquired the shares,” Feeney said.
“These shareholders hold about 50percent of Quilter’s issued shares but less than 1percent of the company’s share capital,” he said.
Quilter has more than 460000 shareholders of which about 220000 or 48percent hold fewer than 100 ordinary shares and, in aggregate, represent 0.89percent of the total number of ordinary shares in issue.
However, Feeney said that the small shareholders had a right to hold on to those shares if they did not want to sell them.
He said if eligible shareholders were to participate in the odd-lot offer, the maximum cash consideration payable to them would be approximately £24million (R497m) based on a closing price of 132.8pence a share.
Quilter reported a profit after tax of £146m for year to end December from £488m last year.
Adjusted profit before tax increased 3percent to £182m.
The group said its loss before tax from continuing operations amounted to £21m compared to a profit of £66m last year while adjusted profit before tax increased 1percent to £235m, of which £53m was from Quilter Life Assurance (QLA).
It said assets under management increased 13percent to £110.4bn, while net client cash flow came in at £300m, down from £4.7bn in 2018.
The group reported adjusted diluted earnings per share of 11.3 pence a share, down from last year’s 13.5p and it declared a final dividend of 3.5p a share.
Feeney said 2019 was a pivotal year for Quilter.
Quilter shares rose 3.79percent on the JSE yesterday to close at R29.03.