South African investment company Old Mutual's shareholders plan to secure about 50 billion rand ($3.5 billion) from the spin-off of a majority stake in Nedbank and dividends.

Shareholders will receive $3 billion from the spin-off and $500 billion in interim and special dividends that will be paid on October 16.

Old Mutual will distribute 158.7 million Nedbank shares to its shareholders, who will receive approximately 3.2 Nedbank shares for every 100 Old Mutual shares they own.

The Nedbank spin-off is the final step in the group’s break up, which was mostly completed in the six months ended on June 30.