NAB declines stake in PIS
National Australia Bank (NAB) has declined to act on a 19.4 per cent share option it held over the parent company of Professional Investment Services, Professional Investment Holdings (PIH).
PIH managing director Grahame Evans said the existing business and client relationships between the two groups would remain intact, describing MLC as a “strong partner”. MLC head of advice and marketing Richard Nunn also described the “good relationship” between the two groups, confirming they would continue to work closely together.
The share option was one of the hangovers of NAB’s Aviva Australia acquisition, with Aviva having initially acquired the stake in 2005.
Evans said that stake now remains with Aviva Overseas Holdings (AOH), which he said had “not indicated their immediate intention”. Those intentions might become clearer following discussions between the two groups in October.
Evans said the PIH reaction to NAB’s decision was mixed.
“We were always circumspect about how the MLC and PIH culture would blend. The fact that we’ve still got the relationship is important to us, but we didn’t know what it would be like having MLC as a major shareholder on our register. It could have been very positive; it could have gone the other way as well,” Evans said.
“A lot of the old Aviva people are still involved with the business and that gives us great comfort. We’re happy with the ongoing relationship.”
PIH is proceeding with a merger with listed insurance premium funding company Centrepoint Alliance, expected to be completed by the end of this year.
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