Suncorp (ASX:SUN) to sell wealth division for $45m

Company News

by Michael Luu

LGIAsuper is set to acquire the Australian Wealth division of Brisbane-based financier Suncorp Group (ASX:SUN) for $45 million.

The takeover will enable LIGAsuper’s access to $6.4 billion in funds under management and 137,000 subscribers.

The payment package consists of a fixed amount of $26.6 million and the rest in regulatory capital.

The transaction’s completion time is scheduled for FY22, pending approvals from financial authorities

In the wake of a strategic overhaul, Suncorp determined that it would be in their best interests of the company’s employees, superannuation members, shareholders to offload their wealth section to a supportive partner.

Under the terms of the transaction agreement, LGIAsuper will assist in offering Suncorp superannuation services to Suncorp customers for a period of one and a half years

Suncorp’s analysts believe the deal will have a broadly neutral bearing on the group’s earnings.

Shares in Suncorp Group (ASX:SUN) last traded at $10.41

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.