NAB has completed the sale of its New Zealand wealth management businesses to a new entity called FirstCape, a deal that is expected to result in a $400m pre-tax gain for the bank.
As announced in December, FirstCape brings together NAB’s JBWere New Zealand and BNZ Investment Services with Jarden Wealth and Harbour Asset Management.
NAB will hold a 45 per cent stake in FirstCape, with Jarden holding 20 per cent. Funds managed by Pacific Equity Partners acquired a 35 per cent stake in FirstCape, with its investment used to fund the cash payments to NAB and Jarden.
NAB says the transaction is expected to result in a pre-tax gain of approximately $400m before transaction costs, which will be excluded from cash earnings. The gain will be included in the group’s statutory net profit for the half year ending September 30, 2024.
