Equity Trustees to purchase ANZ Trustees for $150 million
Equity Trustees (EQT) will purchase the trustee division of ANZ Bank for $150 million, with the purchase to be funded by a fully-funded equity raising of $160 million to be conducted by EQT.
The deal boosts EQT's Private Wealth Services funds under management/advice by $2.7 billion and makes EQT the largest independent listed trustee service provider in Australia.
EQT managing director and chief executive Robin Burns said the purchase involved the majority of the ANZ trustee business, as some parts of the business, including staff, would remain with ANZ to maintain its Private Bank activities.
As a result, EQT will make job offers to 60 ANZ Trustees staff and expects to transition them across to EQT at the end of July 2014, subject to regulatory approval.
As part of the sale EQT and ANZ will have a mutual referral arrangement for five years, with the possibility of a renewal for a further five years. EQT will provide trust and philanthropic administration and execution and estate administration to ANZ Private Bank clients.
The two groups will also investigate strategic opportunities including the provision of ANZ products to EQT clients, the development of annuity-style products relevant to retirees, and aged care and aged care advice and placement services.
EQT chairman Tony Killen said the culture and values of the two companies were closely aligned, while Burns said the deal would not intrude on either party's strategic development or other business relationships.
AUTHOR
Staff Writer
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