Westpac has reduced its shareholding in BT Investment Management from 29 per cent to 10 per cent following a successful placement to institutional investors.
Westpac has completed an institutional bookbuild for the sale of 60 million shares in BT Investment Management (BTIM).
The shares were priced at $10.75 at the top end of the range quoted by Macquarie, which acted as sole lead manager, underwriter and bookrunner for the offer.
The sale price of $10.75 represents a 10 per cent discount to the 30-day volume weighted average price.
As a result of the sale, Westpac has reduced its holding in BTIM from 29 per cent to 10 per cent.
The bank said it intends, "subject to favourable market conditions", to sell its remaining 10 per cent stake in the future.
BT Financial Group chief executive Brad Cooper said BTIM will remain an important asset management provider to BT Financial Group.
"However, with the successful diversification of BTIM's business outside Australia and our market leading Panorama platform, Westpac no longer needs to retain a shareholding in BTIM," Mr Cooper said.
Completion of the offer is expected to add approximately 10 basis points to Westpac's Common Equity Tier 1 capital ratio.
The transaction is expected to settle on Friday, 26 May 2017.