(Adds details on reasoning, IOOF CEO statement, background)
Aug 31 (Reuters) - Wealth manager IOOF Holdings Ltd (IFL) said on Monday it would acquire National Australia Bank Ltd's (NAB) (NAB) wealth management business for A$1.44 billion ($1.06 billion), to help save costs and expand its reach.
NAB, Australia's third-largest bank by market capitalisation, decided in 2018 to divest MLC Wealth, but delayed plans due to a management overhaul and a government-appointed inquiry into the financial services sector that found industry-wide misconduct.
IOOF in a statement said it expects the acquisition to be completed by June 30, 2021, and that it would deliver A$150 million of annual pre-tax cost savings by the third full year of ownership.
"The opportunity to acquire a highly complementary business of the quality and size of MLC is compelling. MLC is a natural fit with IOOF and presents a unique opportunity to create value from synergies," IOOF Chief Executive Renato Mota said in the statement.
IOOF said it would fund about A$1 billion of the deal value through an institutional placement and entitlement offer, while the rest would be via debt, a loan note issued to NAB and existing cash.
In a separate statement, NAB said it would book a post-tax loss of about A$400 million on the divestment.
($1 = 1.3574 Australian dollars)
- Forums
- ASX - By Stock
- IFL
- News: IFL UPDATE 1-Australia's IOOF to buy NAB's wealth unit for $1.1 bln, eyes cost savings
News: IFL UPDATE 1-Australia's IOOF to buy NAB's wealth unit for $1.1 bln, eyes cost savings
-
- There are more pages in this discussion • 165 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add IFL (ASX) to my watchlist
(20min delay)
|
|||||
Last
$2.69 |
Change
0.060(2.28%) |
Mkt cap ! $1.804B |
Open | High | Low | Value | Volume |
$2.60 | $2.75 | $2.60 | $4.678M | 1.734M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 24489 | $2.69 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$2.71 | 8342 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 2186 | 2.660 |
7 | 188320 | 2.650 |
1 | 2186 | 2.640 |
1 | 2186 | 2.630 |
1 | 2186 | 2.620 |
Price($) | Vol. | No. |
---|---|---|
2.720 | 12186 | 3 |
2.730 | 2186 | 1 |
2.740 | 5186 | 2 |
2.750 | 17640 | 7 |
2.760 | 15186 | 3 |
Last trade - 16.10pm 04/10/2024 (20 minute delay) ? |
Featured News
IFL (ASX) Chart |