Carol Schwartz-chaired Equity Trustees will acquire Australian Executor Trustees for $135 million, a business it has competed with since the late 19th century.
Equity Trustees chairwoman Carol Schwartz said the EQT deal would be “transformative”.To bankroll the deal, the 134-year-old specialist corporate and investment trustee will kick off a $125 million equity raising, made up of a $40.4 million fully underwritten placement to institutional shareholders and $84.6 million non-renounceable entitlement offer. It will also draw on a $40 million loan from ANZ Bank.
In a statement, Insignia chief executive Renato Mota said: “The sale of AET marks another important milestone in delivering on Insignia’s key strategic priority to simplify and focus our business.” He said the deal would add about $5 billion to EQT’s funds under administration and boost its revenue and earnings by more than a third.The announcement came as EQT reported net profit after tax for the year ended June 30 of $24 million, representing an increase of 12.5 per cent. Revenue rose by 10.4 per cent to $112 million and FUA rose by 3 per cent to $149 billion.
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