IOOF subsidiary to buy bank’s books
An IOOF subsidiary, Bridges Financial Services Group, today announced to the Australian Securities Exchange (ASX) that it would acquire Bendigo and Adelaide Bank’s financial planning books, as well as entering an exclusive referral arrangement that would see the bank’s clients referred to Bridges.
Bridges offered the bank cash consideration of $3 million on completion, which was expected to occur on 31 July, this year, plus a further payment payable on the first anniversary of completion subject to maintaining an agreed ongoing service client retention rate.
IOOF said that Bridges would see an increase in scale as a result, with the Bendigo Financial Planning advisers expected to add $1 billion of funds under advice.
The transaction was, of course, subject to satisfaction of customary conditions precedent. While Bridges didn’t uncover any material issues with the bank’s financial planning business during its due diligence process, Bendigo had provided indemnities in favour of Bridges and IOOF for any liability that arose from its conduct prior to completion.
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