Trinity cuts funds management business in half
Listed group Trinity Limited is selling half of its wholesale funds management business as it seeks to reduce its debt levels.
The group has entered a contract with property funds management player Clarence Property Corporation. Under the deal, Clarence will acquire 50 per cent of Trinity Funds Management (TFM) as well as a recently established service trust that provides services to TFM.
The price tag is $4 million, plus 50 per cent of the net assets of the business, with a further payment of $1 million contingent on subsequent events.
The sale of half of Trinity Funds Management is linked with the sale of 6 million units in the Trinity Property Trust for $5.4 million at 90 cents per unit.
The sale has sparked a management restructure, with Trinity joint managing director Steve Leigh to resign as a director from Trinity and take the position of chief executive officer of Trinity Funds Management. Trinity joint managing director Steve Morton will become deputy chairman of Trinity, initially in a full-time capacity — although the group said it would become a part-time role from July.
Both Leigh and Morton have had the share options granted to them last year cancelled.
Craig Bellamy remains chief executive of Trinity Limited. The board of the responsible entity of TFM also remains unchanged, comprised of Geoff McWilliam, Ron Higham, Trevor Gordon and Trinity chairman Brett Heading.
Heading said the proceeds from the sale would assist in reducing the debt facilities the group has in place with the National Australia Bank.
Heading described Trinity and Clarence as “compatible partners”, saying the deal would ultimately increase value for Trinity Group shareholders.
In announcing the management restructure, Heading thanked Leigh for his role in “stabilising the property funds management operations” of Trinity Limited, while thanking Morton for introducing a new corporate governance framework for the group.
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