Old Mutual sells U.S. fund arm stake to China's HNA

LONDON, March 26 (Reuters) - Anglo-South African financial

services firm Old Mutual said it has sold a 25 percent

stake in its U.S. fund management arm to China's HNA

for $446 million, as part of its plan to split itself

into four companies.

Old Mutual, which says regulatory change has made its

business too complex to run in its current form, is aiming to

break into four parts by the end of next year.

It has said it plans to dual-list its UK asset management

and African emerging markets businesses in London and

Johannesburg and reduce stakes in U.S. firm Old Mutual Asset

Management (OMAM) and South Africa's Nedbank.

It had already started cutting its stake in OMAM.

The sale to HNA Capital US, part of conglomerate HNA's

financial services unit, cuts Old Mutual's remaining stake in

OMAM to 26 percent, the firm said in a statement late

on Saturday.

HNA has been building up stakes in a series of companies

across Europe and the United States. It is now the third biggest

shareholder in Deutsche Bank, raising its stake last

week to 4.76 percent.

The two-stage OMAM deal involves the sale to HNA of a 10

percent tranche at $15.30 per share and 15 percent tranche at

$15.75 per share, at an approximate $1 premium to Friday's

closing price.

Two HNA Capital US directors are expected to join OMAM's

board, replacing Old Mutual directors, Old Mutual said.

(Reporting by Carolyn Cohn and Rachel Armstrong; Editing by

Elaine Hardcastle)