Managed account platform Praemium is looking to divest from its international business operations through a formal sale process.
In an announcement to the Australian Securities Exchange (ASX), Praemium said the divestment would allow the firm to focus on its financial and leadership resources on further accelerating its growth trajectory in the Australian platform market for the benefit of all shareholders.
The firm’s strategic review found while the international platform operation had strong sales and revenue momentum, the marketplace was undergoing significant structural change and consolidation where the business remained at a scale disadvantage to its competitors.
“The Praemium board believes an alternative owner of the business will simplify the group, better serving the interests of its clients and better advancing the career opportunities of its employees,” the announcement said.
“Praemium has received unsolicited, strong interest from potential buyers. However, the Praemium board notes that there is no certainty around whether the sale process will result in a binding transaction or whether there will be a decision or recommendation by the Praemium Board to pursue any transaction.”
In the firm’s June quarterly update released today, Praemium chief executive, Anthony Wamsteker, said: “The international business had a standout quarter, with record inflows and funds under administration exceeding $5 billion for the first time. We continue to execute on our on-boarding of new clients and opportunities”.
“The strategic review of Praemium’s international business has reached a conclusion and the board believes an alternative owner would better realise the full potential of the international opportunity.”