Millennium3 (M3) has purchased a majority stake in Elders Financial Planning, a division of Elders' wider financial services business.
Under the agreement, Elders will own a 49 per cent stake in the joint venture company, with M3 to own 51 per cent.
The sale will enable Elders Financial Planning to significantly increase its adviser representation across Australia and make financial planning services more widely available to Elders' rural and regional clients.
In addition, the deal will lead to a broader product selection and improved back office support services and capability.
Total cash proceeds of $5 million will be received by Elders for the 51 per cent stake, with formal agreement of the transaction targeted for the end of the month and a new ownership structure to come into effect from 1 November 2009.
Trading will continue under the Elders Financial Planning name and branding will be retained.
"M3's commitment to the joint venture is an affirmation of the work done by the Elders Financial Planning team to date and of the potential for delivery of wealth management services through the Elders network," Elders chief executive Malcolm Jackman said.
Former Elders Wealth Management general manager Helen Lorigan will become chief executive of Elders Financial Planning as part of the change.
"Elders Financial Planning has 35 advisors and approximately 33,000 clients and we're clearly very happy with the purchase by M3," Lorigan told InvestorDaily.
M3 has 810 advisors, $6.5 billion in funds under advice, over $200 million in risk in-force premiums and is the fastest-growing dealer group in Australia.
Following ANZ's purchase of its remaining 51 per cent stake in ING Australia last week, ANZ is now set to become the biggest employer of aligned financial planners among the major Australian banks.
Aside from M3, other ING-owned dealer groups include Financial Services Partners, RetireInvest and ING Financial Planning.
ING also purchased a 37.5 per cent stake in dealer group Sentry Financial Group at the beginning of the year.
