Wilson HTM Investment Group (WIG) has announced it is selling Wilson HTM Securities to New Zealand private wealth and investment management firm Craigs Investment Partners and Deutsche Bank.
The New Zealand firm has grabbed a 40 per cent share of the securities business, while Deutsche Bank took a 20 per cent share. The remaining 40 per cent will be owned by staff.
Deutsche Bank is also a major shareholder of Craigs, owning 49.9 per cent.
In a statement to the Australian Securities Exchange, Wilson HTM said they expect to make a loss on disposal, mainly due to the deferred taxation asset related to Wilson HTM Securities and Advisory.
Together with transaction costs, this is expected to be between $3 million and $3.5 million.
"The carrying value of the remaining circa $9 million of deferred tax asset will also be considered following this transaction and may be substantially lowered or eliminated," the statement said.
WIG said it will receive cash consideration of $3 million from Craigs and Deutsche Bank, and $2 million from staff, out of which $1 million is vendor finance.