Perpetual buys AXA Trustees for $24m.
Perpetual Trustees will expand its corporate trust business after purchasing AXA Trustees for $24 million.
Perpetual Trustees will expand its corporate trust business after purchasing AXA Trustees for $24 million.
The sale, effective from September 30 is still subject to regulatory approvals with Perpetual picking up net assets of $8 million and paying goodwill on a further $16 million.
The AXA trustee operations, which are primarily private client and corporate trusteeships will be rolled into those of Perpetual add $430 million to the funds under management of Perpetual’s private client business.
At the same time $7 billion in funds under trusteeship and administration will move over to its corporate trust business.
According to Perpetual managing director Graham Bradley the acquisition is part of a strategy of making acquistions to drive future growth.
Bradley says the merger will see the two operations draw together well in areas both share in common.
“The AXA Trustee business fits very neatly with our operations. We expect the purchase to be modestly earnings per share positive for Perpetual shareholders in the current financial year,” Bradley says.
In the year to the sale date, AXA Trustees had revenues around $9 million and AXA says the sale will be earnings per share neutral for its shareholders.
In a statement AXA says the sale result was a significant return above its current holding value and was consistent with its strategy of concentrating on wealth accumulation and financial protection.
AUTHOR
Jason Spits
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