Commonwealth Bank sells 55% stake in Colonial First State to KKR
Category: #business  | By Mateen Dalal  | Date: 2020-05-14 |
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

Commonwealth Bank sells 55% stake in Colonial First State to KKR

Australian banking major Commonwealth Bank announces the sale of majority stake in its investment subsidiary Colonial First State. 55 per cent of the stake in CFS has been sold to KKR, a private equity firm, for $1.7 billion.

In a bid to focus more on core banking operations, Commonwealth Bank has decided to go ahead with the deal to cut down its exposure to the financial sector. It reckons that major banks have been slashing their vulnerability to wealth management owing to scandals that often leave banks with strapping compensation bills. The bottom line will absorb an extra charge of $135 million for customer refunds, claims Commonwealth.

Matt Comyn, Chief Executive at CBA, has stated that the deal would create a more centralized CBA and Colonial would be in a greater position to invest in products and digital systems. Despite the bank’s earlier consideration to selling off Colonial entire, several positive aspects have restrained the bank from doing so. One of these includes the 9.5 per cent of worker wages, as highlighted by the Chief Executive.

A combination of patient capital and global capability is what would help CFS in enhancing its level of investment, claims Comyn.

In Comyn’s words, one of the Founders of KKR has revealed that the company’s investment horizon would be up to 12 years. He further says that KKR is certain to expect a return on its investment.

As stated by Scott Bookmyer, the Partner and Founder of KKR, collaboration with Commonwealth Bank is a step that is sure to accelerate CFS’s transformation. The partnership is bound to strengthen its market position further ensuring long term benefits to its customers, Bookmyer claimed.

The sale will commence with the approval of Foreign Investment Review Board and the banking regulator. The deal is expected to be concluded in the first half of 2021.

Source Credits:https://www.smh.com.au/business/banking-and-finance/cba-sells-majority-colonial-stake-to-kkr-for-1-7-billion-20200513-p54sew.html?ref=rss&utm_medium=rss&utm_source=rss_business

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal     twitter

Mateen Dalal

A qualified electronics and telecommunication engineer, Mateen Dalal embarked on his professional journey working as a quality and test engineer. Harnessing his passion for content creation however, Mateen pens down industry-rich articles for ReportsGO.com and a few o...

Read More..

More News By Mateen Dalal

Oral-B & iADH partner to make oral care positive & accessible for all

Oral-B & iADH partner to make oral care positive & accessible for all

By Mateen Dalal

Oral-B, a well-known American oral hygiene products brand, has reportedly inked a partnership deal with iADH (International Association of Disability and Oral Health), in order to make oral care more positive, accessible, and inclusive for disabled p...

NEA AND SLA SIGN MOU TO SHARE GLOBAL NAVIGATION SATELLITE SYSTEM (GNSS)-DERIVED MOISTURE DATA FOR WEATHER MONITORING APPLICATION

NEA AND SLA SIGN MOU TO SHARE GLOBAL NAVIGATION SATELLITE SYSTEM (GNSS)-DERIVED MOISTURE DATA FOR WEATHER MONITORING APPLICATION

By Mateen Dalal

Singapore, 2 August 2022 – The National Environment Agency (NEA) and the Singapore Land Authority (SLA) have signed a Memorandum of Understanding (MOU) to develop the use of Global Navigation Satellite System (GNSS) data obtained from SLA&rsqu...

Baidu launches Apollo RT6; seeks expansion of its robotaxi fleet

Baidu launches Apollo RT6; seeks expansion of its robotaxi fleet

By Mateen Dalal

Baidu, a leading China-based artificial intelligence (AI) company and search engine, has reportedly uncovered its most recent electric autonomous driving vehicle. As per credible sources, the new vehicle, Apollo RT6, will be a part of the robotaxi...