IOOF confirms MLC Wealth acquisition
IOOF has confirmed its acquisition of the MLC wealth management business.
IOOF confirmed to the Australian Securities Exchange (ASX) that it had entered into transaction agreements with National Australia Bank to acquire 100% of NAB’s wealth management for $1,440 million, subject to completion adjustments.
Importantly, IOOF will not assume conduct or remediation liabilities for MLC advice business.
It said the acquisition was expected to deliver in excess of 20% earnings per share accretion on a 2021 financial year pro forma basis, including $150 million of targeted pre-tax synergies, excluding transaction and integration costs.
Commenting on the move, IOOF chief executive, Renato Mota said the opportunity to acquire a highly complementary business of the quality and six of MLC was compelling.
“MLC is a natural fit with IOOF and represents a unique opportunity to create value from synergies for the benefit of clients, members and shareholders,” he said. “This is a once in a generation opportunity to create the leading wealth manager of the future.”
IOOF said the purchase would be funded via a fully underwritten institutional placement and accelerated non-renounceable entitlement offer.
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