But Gore is still trying to turn around the fortunes of bleeding US arm Destiny, writes Adele Shevel
Discovery Holdings is free to move full force into the investment products market after FirstRand unbundled its 57.1% stake in the company and put it up for sale to new investors.
It also leaves FirstRand with a cleaner, simpler structure and makes the group a more attractive target for foreign buyers seeking a pure banking business.
Discovery has been reined in from the investment products market because of FirstRand’s ownership of life group Momentum.
Discovery started in healthcare but subsequently expanded into life cover, while Momentum focused on life and now offers health cover.
With Discovery’s extension into investment products it would have been treading on the turf of RMB Asset Management — also owned by FirstRand, and possibly resulting in more conflict in the stable.
The unbundling will also improve Discovery’s liquidity, or the amount of shares available to be traded — long a bone of contention in the investment community.
To read the full story, follow http://www.sundaytimes.co.za/Business/Article.aspx?id=559400
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