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