Commonwealth Bank of Australia (CBA) has announced the completion of the divestment of its global asset management business, Colonial First State Global Asset Management (CFSGAM) to Mitsubishi UFJ Trust and Banking Corporation (MUTB).
The final sale proceeds would be $4.2 billion, subject to completion adjustments, with the total consideration representing a multiple of 19.4x CFSGAM’s unaudited pro forma FY19 net profit after tax of $218 million and a post-tax gain on sale of approximately $1.5 billion.
“Today’s announcement represents an important milestone towards executing CBA’s strategy to become a simpler, better bank,” CBA’s chief executive, Matt Comyn, said.
“The sale of CFSGAM to MUTB creates significant value for CBA shareholders and is a positive outcome for CFSGAM clients and employees.”
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