MMC acquires MBF Life and Clearview
MMC Contrarian will acquire Bupa Australia’s life insurance and wealth management businesses, MBF Life and Clearview Retirement Solutions, for $195 million.
The announcement comes on the back of a MMC Contrarian trading halt on the Australian Securities Exchange yesterday morning, with the company citing “a potential significant acquisition and associated capital raising”.
The deal will be funded by existing cash of $69.2 million and a $135 million fully underwritten capital raising at a price of $0.50 per share, according to MMC. The sale is subject to regulatory and MMC shareholder approvals.
Bupa Australia will also enter into a long-term distribution alliance with MMC, involving the ongoing sale of life risk and wealth management products to Bupa Australia’s customers, and the sale of private health insurance to MMC's customers, according to Bupa.
Former CommInsure chief Simon Swanson will be the new managing director of MMC. The previous managing director Alex Hutchison will be the chief executive of MMC’s wealth management and advice business with responsibility for the expanded businesses of ComCorp and Clearview.
The acquisition “transforms MMC into a highly focused life insurance and wealth management business,” according to MMC.
“Bupa’s Life Insurance and Wealth Management businesses are a transformational acquisition for MMC and represent a unique opportunity to position MMC favourably in the growing Australian life risk and wealth management market,” said Swanson.
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