Wealth management group Quilter today sold its international business for £483 million in the last of the disposals planned by management since its £2.8 billion IPO in 2018.
The company formed from Old Mutual’s former wealth management arm is selling its international division to financial advisory firm Utmost, leaving the group focused on its UK wealth operations which its says offers higher growth prospects.
Chief executive Paul Feeney has sold a host of businesses as he tidied up the sprawling Old Mutual business.
Shareholders can expect a return most of the proceeds of the international deal, which should total £450 million after transaction costs. It is already in the middle of returning £200 million through share buybacks from the sale recently of its Quilter Life Assurance operation.
He said the deal left Quilter set up for strong growth as its clients and IFAs were now onboarded to its platform.
The international arm sold today has £21.8 billion of assets under management, revenues of £118 million and profits of £57 million.
Analysts mainly welcomed the deal for simplifying the operation although brokers at Numis said the price was slightly disappointing.
Canaccord’s Jeremy Grime said the deal would simplify Quilter’s balance sheet but said the shares looked fully valued at a price-earnings ratio of 17 times. “There is significant upside but also significant disruption risk,” said Grime.
