News: WBC Australia's Westpac to exit Pendal in a $128 million stake sale

June 17 (Reuters) - Westpac Banking Corp (WBC) said on Wednesday it would sell its remaining 9.5% stake in fund operator Pendal Group Ltd (PDL) for about A$185.4 million ($128.26 million).

Westpac's announcement was in line with its plans to sell the remaining 31 million shares in the investment manager, after a previous sale of Pendal shares in 2017. (https://reut.rs/2UOogIv)

Shares will be offered to institutional investors at A$5.98 each, a 4% discount to Pendal's last closing share price.

After the deal, Westpac expects to add about 2 basis points to the bank's common equity Tier 1 capital ratio and see a post-tax accounting gain in the second half of A$32 million.

It will also likely withdraw almost A$2 billion worth of funds from Pendal in two tranches by the end of 2021, the country's no. 2 lender added.

Last month, Pendal, which was earlier known as BT Investment Management, reported a 14% decline in funds under management in the first-half led by A$2 billion worth of outflows from the Westpac book.

Swiss investment bank UBS is acting as the offer's underwriter and bookrunner. ($1 = 1.4455 Australian dollars)