ANZ has agreed to defer the sale of its One Path Pensions & Investments business to IOOF Holdings, with the firms adding amendments in their contracts following action from APRA.
ANZ expects the deal will be complete by 1 July.
IOOF said the changes will enable the completion of a successor funds transfer (SFT), necessary to separate the P&I business products from OnePath Life (independent of the IOOF acquisition).
The $975 million deal is also subject to consent from both independent custodians of OnePath and ANZ.
The sale must also meet the condition that the coupon rate of 14.4 per cent per annum on the debt note subscribed by IOOF from ANZ in October will be paid until the SFT is completed, which ANZ expects will happen by July.
ANZ added that the amendment also allows more time for the P&I Independent Trustee to separately consider the transfer of the business.
“We continue to work towards the effective completion of the initiatives outlined to the market on December 21 2018 in relation to the APRA license conditions,” Renata Mota, acting CEO of IOOF said.
“We remain confident that completion of the P&I acquisition should be able to occur shortly after the SFT completion and we will continue to work co-operatively and constructively to achieve this outcome.”
The OnePath P&I business sale to IOOF was announced in October 2017, while OnePath Life (OPL) is being sold to Zurich Financial Services.
The sales were confirmed to be able to be independent of each other to the ASX in December.
Completion of the OPL acquisition is expected to happen in the first half of the year.
ANZ Deputy CEO Alexis George said: “The contract amendment allows us to continue the work to separate our wealth businesses, while also allowing the P&I Independent Trustee appropriate time to consider its consent to that acquisition.”
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