Perpetual looks to offload Lenders Mortgage Services
Perpetual has reached a conditional agreement to sell its Perpetual Lenders Mortgage Services (PLMS) to First Mortgage Services affiliate FAF International Property Services (Australia), according to a statement to the Australian Securities Exchange (ASX).
Perpetual described the announcement as a "first major update on the implementation of its Transformation 2015 strategy", which was announced on 25 June 2012.
The strategy aims to "significantly simplify the company's corporate structure, refocus its operational activities and capture new opportunities for growth," Perpetual stated.
"The sale allows us to refocus our corporate trust business on corporate fiduciary services," said Perpetual chief executive and managing director Geoff Lloyd.
Although PLMS is "competitively well positioned" it fits better within a company that can add scale and technological innovation, Lloyd said.
"A sale also gives us the best opportunity to maximise PLMS' value for our shareholders," he added.
Perpetual did not disclose the terms of the sale or the conditions that would need to be met for the sale to proceed, but said the transition was not expected to be material to Perpetual's net profit after tax.
First Mortgage Services is a subsidiary of US-based First American Financial Corporation. PLMS has around 280 full time staff (as at 31 May 2012). Completion of the sale is expected to occur before 30 September 2012, according to the ASX statement.
The operations team within the PLMS business is expected to remain in place following completion of the acquisition, according to First Mortgage Services.
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