MLC finalises Hong Kong practice deal
MLC has finalised a deal giving it 100 per cent ownership of a Hong Kong-based wealth management business for a purchase price of $148 million.
The purchase, which was originally announced on April 14 this year and expected to cost $145 million, sees MLC take full control of HKMLC Holdings, a joint venture of the National Group’s Hong Kong wealth management business, in which it formerly held a 62 per cent stake.
MLC Asia chief executive officer, Leigh Watson said there would be no impact on jobs as a result of the transaction and customer relationships, policies and benefits would also remain unaffected by the change.
“It is business as usual for our MLC Hong Kong business... The only change is that MLC’s shareholding has increased to 100 per cent,” Watson said.
Hong Kong has seen several wealth management businesses change hands in recent months. Last week, the Commonwealth Bank sold its wealth management operations to Canadian insurance company, Sun Life, while Professional Investment Services (PIS) announced in June that it was in discussions with two Hong Kong practices.
At that time, PIS Chief executive Robbie Bennetts said the company aimed to take a 50 per cent stake in one of the businesses and 30 per cent stake in the other. One of the Hong Kong practices also had operations in China, and the group saw an agreement with the practice as a way to enter the Chinese market.
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