Westpac has invested $30.9 million taking a 25 per cent stake in financial services group HP JDV.
The Westpac deal is part of a $40 million capital raising by HP JDV to fund expansion. The remaining $9.1 million will be raised through an excluded offer from institutions, staff and investors to subscribe for shares to be issued at $1.20 each.
After the fundraising is complete, Westpac and Royal Bank of Canada (RBC) will 25.1 per cent of HP JDV, however an HP JDV shareholders’ meeting has yet to be held to approve the transaction. RBC previoously had a 40 per cent stake in the group which has been diluted by the capital raising.
If shareholders approve the moves Westpac will appoint two directors to the board of HP JDV.
The move further cements the relationship between the two groups after Westpac announced early last month that it plans to outsource the technology and transaction processing operations of Westpac Broking to JDV.
JDV also provides technology and outsourcing services to AMP, Charles Schwab Australia, St George Bank, Quicken, BT Portfolio Services, Sealcorp, BankWest, Suncorp Metway and Macquarie Financial Services Group.
The combined HP JDV operation has four businesses operating under two brands. The Hartley Poynton businesses are Hartley Poynton Wealth Management and the Hartley Poynton Investment Bank. The JDV businesses are JDV Technology and JDV Outsourcing.
