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Old Mutual sells Buxton UK wealth business for $800 million

Staff Writer |
Old Mutual is selling its UK wealth business run by veteran fund manager Richard Buxton to private equity firm TA Associates for 600 million pounds ($803 million).

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The sale of Old Mutual Wealth's single-strategy asset management business - where each fund focuses on one type of asset rather than a mix - is part of a planned break-up of the group.

TA Associates is paying 570 million pounds in cash on or before completion, with 30 million payable afterwards, between 2019 and 2021, Old Mutual said in a statement.

Old Mutual's shares rose 4 percent on the news, to the top of Britain's FTSE-100 index.

The majority of the single-strategy management team, including Buxton, will move with the business, Old Mutual said.

"The management team is delighted to be partnering with TA Associates to buy the single strategy business," Buxton said. "This is a good outcome for our customers and our staff."

Old Mutual is planning to list the remaining UK multi-asset business of Old Mutual Wealth next year, as it looks to break itself into four parts by the end of 2018.

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