IOOF and JP Morgan have agreed to sell their stakes in longstanding broking and wealth manager company Ord Minnett, leaving a consortium of private investors with full ownership of the business.
IOOF’s 70 per cent stake is expected to sell for $115 million, resulting in a post-tax profit of approximately $83 million for the company. The total amount for the sale has not been confirmed.
The consortium led by Ord Minnett’s management is intending to acquire JP Morgan’s 30 per cent stake concurrently.
For that to happen, IOOF will first gain JP Morgan’s piece before selling all of its holding to Ord Minnett.
Completion of the sale is anticipated to occur around 24 September.
Newly appointed IOOF chief executive Renato Mota said Ord Minnett had been successfully under IOOF and JP Morgan ownership for more than a decade.
“This is a timely opportunity for IOOF to divest its holding in Ord Minnett as we recalibrate our business and focus on our core wealth management abilities,” Mr Mota said.
“IOOF will continue to provide services to Ord Minnett for the next 12 months to ensure an orderly transition for the company and its clients.”
Ord Minnett had $10.1 billion in funds under administration as of 31 May, along with 264 licensed financial advisers.
The company’s post-tax and non-controlling interest contribution to IOOF’s NPATA for the 11 months to the end of May was $11 million.
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