IOOF looks to Bendigo for buyer
Major Victorian friendly society IOOF is looking to sell its building society as part of a rationalisation of its business.
Money Management understands the friendly is currently in discussion with Victorian regional bank Bendigo Bank about the disposal of the building society.
IOOF managing director Rob Turner would not confirm that discussions were underway, saying only the society was looking at all areas of their business and at building alliances.
"We are talking to a number of parties at present about a range of moves involving the (building) society," he says.
A spokesman for Bendigo Bank could not confirm the move, but said:
"We are talking to a range of people."
The IOOF Building Society had net outflows of $34.6 million in the 1998 financial year, compared to a positive inflow of $8.9 million in the previous period. Deposits for the society are in excess of $300 million, according to the 1998 financial statements.
The move follows another IOOF asset disposal, namely the sale of its retirement village business to Prime Life. Turner says the move was aimed at freeing-up the friendly society to concentrate on its funds management business.
"Proceeds from this sale will be re-deployed to support the rapid growth of our investment product business," he says.
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