IOOF and ANZ have agreed on changes to the contractual arrangements around IOOF’s acquisition of ANZ’s pensions and investments business, OnePath.
IOOF announced to the Australian Securities Exchange (ASX) today that the changes related to the acquisition of ANZ’s One Path Pensions and Investments business.
It said that following recent actions by the Australian Prudential Regulation Authority (APRA) changes to the transaction agreements had been agreed to accommodate the likely delay in completion of the pensions and investments business to later this year.
It said the changes would enable the completion of a successor fund transfer, provide that completion of the acquisition would occur subject to the consent of the OnePath and Custodians and provide that the coupon rate of 14.4 per cent a year on the debt subscribed by IOOF from ANZ would be paid until the successor fund transfer was completed.
Commenting on the changes, IOOF acting chief executive, Renato Mota said the firm was continuing to work towards the effective completion of the initiatives outlined to the markets on 21 December in relation to the APRA licence conditions.
“We remain confident that completion of the pensions and investments acquisition should be able to occur shortly after the successor fund transfer completion,” he said.