Westpac to float BT
Westpac Banking has confirmed overnight reports that it is planning a partial float of its funds management arm, BT Investment Management, which would represent one of the largest listings of a financial services company in the past decade.
The float, which is planned for late this year or early 2008, will leave the BT Financial Group subsidiary “largely in its current form and with its current investment team”, including current chief executive Dick Morris, according to a media statement.
BT Investment Management is currently Australia’s seventh largest fund manager with $40 billion in funds under management, which represents about 10 per cent of BT Financial Group’s earnings and less than 1 per cent of Westpac’s overall earnings.
Westpac/BT Financial Group will be retaining a majority stake in the new company, which will remain BT branded, with the remainder to be held by BT Investment professionals, institutions and Westpac shareholders.
BT Financial Group chief executive Rob Coombe said the move to listing with a Westpac ownership would better align the interests of both customers and employees in a “rapidly evolving market”.
“This new ownership structure for funds management supports the retention and attraction of the market’s best professionals, which will put us in a strong position to ensure we continue to meet client needs into the future.”
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