Westpac Sells 19% Of BT Investment Management

Consistent with this strategy to prioritise investment and capital management, Westpac Group has announced a fully-underwritten offer of 60 million shares (approximately 19% of BTIM’s shares on issue) to institutional investors domiciled in Australia and other relevant jurisdictions.

Following completion of the offer, Westpac’s ownership in BTIM will reduce from 29% to 10%. Westpac intends, subject to favourable market conditions, to sell its remaining 10% shareholding in BTIM in the future.

Completion of the offer is expected to add approximately 10 basis points to Westpac’s Common Equity Tier 1 capital ratio.

While BTIM will remain a strategic partner, following the selldown some changes in the arrangements between Westpac, BT Financial Group and BTIM will occur over time.

We estimate the post-tax profit on sale will add around A$100 million, or more than 1% of the banks FY17 earnings.

Author: Martin North

Martin North is the Principal of Digital Finance Analytics

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