It has been reported that Old Mutual has lost up to R10 billion in market share since its legal battle with axed CEO Peter Moyo began in May 2019.
The Public Investment Corporation (PIC) which invests government employees pensions, is one of Old Mutual’s biggest shareholders. The PIC has urged the insurance giant to settle its differences with Moyo.
Chartered Accountant and political commentator Khaya Sithole explains how the legal spat can affect the ordinary citizen investing with Old Mutual.
Sithole says there are stakeholders who invest their money every month, in order to get it when they retire. “Those particular stakeholders probably aren’t as affected, because for them obviously Old Mutual is holding that money in a fiduciary capacity, they had to invest it in particular instruments and ensure that it generates a particular return.”
According to Sithole, the other stakeholders are the ones who have invested in Old Mutual itself, where they buy shares in the organisation. “Those are the ones that are probably more worried about what is happening at Old Mutual, because they are the ones investing in the business.”
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