Trust sells stake in BNY Trust Australia
Trust Company has completed the sale of its 50 per cent interest in BNY Trust Australia (BNYTA) to its joint venture partner The Bank of New York Mellon (BNY Mellon), it announced today.
Trust sold its interest for $39.2 million before tax, which will generate an after tax profit of around $14 million.
At the same time, Trust announced that it would be giving approximately $32 million to Trust shareholders.
“We will be paying a special dividend of $1.00 per share, franked to 70 per cent. The special dividend has a record date of June 26, 2008, and a payment date of July 11, 2008,” Trust managing director Jonathan Sweeney said.
Sweeney added that the joint venture with BNY Mellon had added significant shareholder value to shareholders of both companies.
“The business will be in good hands with BNY Mellon. The decision to sell our interest marks the end of a rewarding partnership of nearly three years,” he said.
BNYTA managing director John McGee said the company would continue to invest and grow the business to capitalise on the long-term prospects of the Australian marketplace.
Recommended for you
The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call.
Two national advice businesses have merged to form a leading holistic advice business with $2.5 billion in funds under management.
Insignia Financial has completed its transition of a range of administration and technology functions to SS&C Technologies as it seeks to be a leading wealth manager by 2030.
ASIC has permanently banned a financial adviser after he allegedly concealed information from clients and misused client funds, among other breaches.
