Trust sells stake in BNY Trust Australia
Trust Company has completed the sale of its 50 per cent interest in BNY Trust Australia (BNYTA) to its joint venture partner The Bank of New York Mellon (BNY Mellon), it announced today.
Trust sold its interest for $39.2 million before tax, which will generate an after tax profit of around $14 million.
At the same time, Trust announced that it would be giving approximately $32 million to Trust shareholders.
“We will be paying a special dividend of $1.00 per share, franked to 70 per cent. The special dividend has a record date of June 26, 2008, and a payment date of July 11, 2008,” Trust managing director Jonathan Sweeney said.
Sweeney added that the joint venture with BNY Mellon had added significant shareholder value to shareholders of both companies.
“The business will be in good hands with BNY Mellon. The decision to sell our interest marks the end of a rewarding partnership of nearly three years,” he said.
BNYTA managing director John McGee said the company would continue to invest and grow the business to capitalise on the long-term prospects of the Australian marketplace.
Recommended for you
As Insignia Financial formally completes the separation of MLC from NAB, Money Management reflects back on how the acquisition came to be and where Insignia sees MLC going forward.
The Financial Services Council has made multiple recommendations to ASIC regarding exercising its powers around AFSLs to mitigate the risk of failing companies including greater capital requirements.
Advice licensee Centrepoint Alliance has announced a service partnership with self-managed superannuation fund solution provider SuperConcepts.
The Compensation Scheme of Last Resort says it has received over 200 claims for compensation relating to personal financial advice since its inception and detailed the specific recurring issues being raised by claimants.
