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Investec to spin off asset-management business

Investec PLC (INVP.LN) said Friday that it plans to spin off and separately list the Investec Asset Management business, which is expected to be completed in the next 12 months.

The investment bank said Chief Executive Stephen Koseff will step down on Oct. 1, to be replaced by Fani Titi and Hendrik du Toit as joint chief executives.

When the spin off is completed, Mr. Titi will lead the remaining group, which will include the Investec Specialist Banking and Investec Wealth Investment businesses in its current dual-listed structure, while Mr. Toit will lead Investec Asset Management.

The company said it intends that Investec Asset Management is listed on the London Stock Exchange, with an inward listing on the Johannesburg Stock Exchange in South Africa. The remaining group may take a minority stake in Investec Asset Management, Investec said.

The company also said that earnings in the first half of fiscal 2019 were hit by depreciation of the South African rand against sterling, although revenue for the six months ending Sept. 30 is expected to be moderately ahead of the year-earlier period.

Investec said that the total impairment charge during the first half of the year is expected to be lower than in the same period last year.

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