M and A
MMC Takes Over BUPA's Wealth Management, Insurance Operations
MMC Contrarian, the Australian financial services firm, has
agreed to purchase the life insurance and wealth management units
of
British United Provident Assocation-Australia for A$195
million ($176 million).
The takeover of
MBF Life and ClearView Retirement Solutions includes a
10-year exclusive deal to market MMC's life insurance and wealth
management products to BUPA Australia's 2.9 million private
health insurance clients, the company said in notice to
shareholders. It will be funded via existing cash resources worth
A$69.2 million, a A$61.7 million institutional placement, and
A$73.3 million non-renounceable pro-rated entitlement offer.
The new entity will also be renamed
ClearView Wealth Limited upon completion of the
acquisition.
Simon Swanson, the former chief executive officer of
CommInsure, will lead the expanded unit as managing director,
while ex-MD
Alex Hutchison will spearhead its wealth management and
advice activities.
GPG, MMC's largest shareholder, has also expressed support for
the transaction and said that it intends to vote its 68 per cent
shareholding in favour of all resolutions, including the
conditional placement. MMC shareholders will vote on the
transaction during the annual general meeting on 30 April.
Regulatory deliberation results are expected in June.
