CBA (ASX:CBA) to sell stake in Colonial First State

Company News

by Rachael Jones

The Commonwealth Bank of Australia (ASX:CBA) has entered into an agreement to sell a 55 per cent interest in Colonial First State to KKR, a global investment firm.

KKR has US$207 billion of assets under management.

The transaction implies a total valuation for Colonial First State on a 100 per cent basis of $3.3 billion, which will result in CBA receiving cash proceeds of approximately $1.7 billion from KKR.

Together, CBA and KKR intend to undertake a significant investment program, strengthening the position of CFS as one of Australia’s leading retail superannuation and investments businesses.

Shares in the Commonwealth Bank of Australia (ASX:CBA) are trading 1.49 per cent lower at $58.82.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.