Tranzact seeks subsidiary buy-back
Tranzact Financial Services, previously Beacon Financial Services, is aiming to buy-back the 60 per cent stake in superannuation administration firm Australia First Financial Services, it sold to its major shareholder, Grosvenor Financial Services Group mid-last year.
The deal, which took place at the same time Beacon was re-branded as Tranzact, saw the firm form an alliance with New Zealand-based Grosvenor to merge what had previously been Australia First Superannuation Administration and Australia First Consulting.
Tranzact director Dick Rodgers says returning to full ownership of Australia First Financial Services, it currently owns 40 per cent, is in line with the group’s long-term growth ambitions.
Australia First is an administration firm focused on the small to medium superannuation fund and self managed super fund end of the market.
At the time of deal last year, Tranzact said the sale of the consulting and super administration arms of the business would allow it to focus on its core business of financial planning, investment consulting advice and actuarial consulting.
However today’s announcement signals a u-turn for the group and indicates administration and consulting is an area it views as being of strategic significance.
According to Beacon executive director at the time Roger Auton, the change of company name to Tranzact reflected a “fresh start for Beacon shareholders”.
This was despite Beacon Financial Services being in no way related to Beacon Investment Management Services or Beacon Funds Management, which acted as a public offer superannuation fund trustee until the Australian Prudential Regulation Authority (APRA) ordered it transfer the funds under its trusteeship to a new approved trustee in 2002.
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