Investec is planning to demerge and separately list its £109bn asset management arm, following a strategic review of the business.
In a stock exchange announcement, the firm said there were "compelling current and potential linkages" between its Specialist Banking and Wealth & Investment businesses, but limited synergies between these two businesses and Investec Asset Management (IAM).
As a result, it now plans to list IAM as a separate business on the London Stock Exchange, with an inward listing on the Johannesburg Stock Exchange.
Meanwhile, the Investec Specialist Banking and Wealth & Investment businesses will remain part of the group's current dual listed companies structure.
Investec said: "The board believes that this transaction simplifies the group and focuses IAM and the remaining group on their respective growth paths, which will enhance the long-term prospects and potential of both businesses for the benefit of their shareholders, clients and employees."
The transaction is subject to regulatory, shareholder and other approvals and is expected to be completed within the next twelve months.
The IAM management stake in the company will be retained and the remaining group may retain a minority stake in IAM.
Post implementation of the transaction, shareholders of the Investec Group will have a direct shareholding in IAM, in addition to their holding in the remaining group.
The Investec Group is currently led by CEO Stephen Koseff but he will step down from this role on 1 October and be replaced by Hendrik du Toit, founding CEO of IAM, and Fani Titi, chairman of the group since November 201, as joint CEOs.
Following completion of the demerger, Du Toit will then lead IAM as executive chairman, while Titi will head up the remaining group.
The newly appointed co-CEO team of John Green and Mimi Ferrini will take full responsibility for the day-to-day management of IAM.
Du Toit and Titi said: "We are confident that the proposed demerger and listing of IAM provides the simplicity of structure and focus to enhance the long-term prospects of IAM and the remaining group for the benefit of our shareholders, clients and employees.
"Investec has a heritage and culture of which we are proud, shaped by the dedication and commitment of our employees and the support of our clients. We look forward to working closely as joint group CEOs during this phase of our evolution and to implement this transaction which we expect will create significant shareholder value over time."
The decision by Investec to demerge its asset management arm follows moves by other financial services groups to spin-off parts of their businesses.
These include Prudential's move to separate savings and investment provider M&G Prudential from the international insurance business and the managed separation of Old Mutual Wealth (which later listed as Quilter) from its parent company and the sale of Richard Buxton's Old Mutual Global Investors.
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