IOOF places assets on the block
IOOF chief executive Renato Mota. Picture: Stuart McEvoy
The $2.9 billion wealth management business IOOF is understood to be pressing ahead with the sale of assets it inherited from the National Australia Bank as part of its $1.4bn MLC acquisition, which was completed in May.
DataRoom understands that IOOF is putting the finishing touches on documents for the sale process for operations such as MLC’s Antares Capital.
Stakes of other businesses it has inherited through the MLC deal are also expected to be on offer.
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Antares has more than $34.8bn of assets under management, including $6.3bn in Australian equities and at least $28.5bn in fixed income.
Its equities and fixed income operations are managed in two separate divisions.
The unit could sell for a price in the low hundreds of millions of dollars, say market experts.
The other part of MLC that IOOF is tipped to sell is its boutique funds management business specialising in global equities, Intermede Investment Partners.
Analysts say the Antares Capital business and Intermede do not fit naturally into the portfolio of IOOF, which sold similar sorts of businesses before it purchased MLC.
IOOF offloaded a 52.4 per cent interest in Perennial Value Management in 2019 and also sold its 70 per cent holding in private wealth manager and broker Ord Minnett for $115m to a consortium embarking on a management buyout.
Earlier, an analyst had said IOOF did not see itself as an asset manager, with the attraction of buying MLC being to integrate the business into the wealth management operations of IOOF.
Parties that may buy up the assets could include those like financial planning group Pinnacle, or the operations could be subject to management buyouts.
Analysts at Morningstar said in a report that the logic of the MLC acquisition was to take advantage of Australia’s mandatory superannuation contribution requirements and ageing demographics that increases the demand for retirement savings and financial advisers.
IOOF’s reputation had been damaged at the 2018 financial services royal commission, where the company was heavily criticised for its conduct, prompting the departure of then boss Chris Kelaher and legal action by APRA against the business.
But Morningstar said this had not impacted the company’s ability to attract funds or financial advisers.
IOOF places assets on the blockIOOF chief executive Renato Mota....
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