Challenger continues non-core sell off
By Craig Phillips
ChallengerFinancial Services Group has chosen superannuation back-office firm Australian Administration Services (AAS) as the preferred bidder in the flagged sale of its corporate super administration business, Challenger Superannuation Services (CSS).
The sale to Kaz Group-owned AAS ends wild industry speculation over the sale of CSS, which Challenger opted to sell after no longer deeming corporate super admin a core business focus. The deal is scheduled for completion by the end of June.
The move is the latest bid by Challenger to divest itself of non-core assets, which includes the announcement in May that the firm would look to sell its more than $1 billion in international property assets in the UK and the US.
In March this year, Challenger also sold 11 of its Australian property interests. These included five cinemas, four commercial property/industrial properties, an office building and a call centre to Cromwell Corporation for $152 million.
In the same month, Challenger also finalised a deal with Great Southern Plantations that saw the latter acquire its 84,000 hectares of forestry assets for $71 million — a $17 million premium on Challenger’s acquisition price.
Challenger Financial Services listed on the Australian StockExchange late last year.
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