IOOF, JP Morgan to sell Ord Minnett stakes

JP Morgan Australia and New Zealand chief executive Robert Bedwell said the bank looked forward to “continuing our long-standing relationship with Ord Minnett, which offers strong capabilities for the distribution of our products and services in Australia.”

Morris consortium

Ord Minnett executive chairman Karl Morris said the business’s financial market track record of adaptability and embracing opportunities went a long way to consolidating its reputation as a venerable financial services group.

“Over the coming months, the consortium intends to enhance the investor pool with parties that align with Ord Minnett’s business values and desire for future growth.

“Importantly, it is anticipated that the new ownership structure could allow staff participation in the future shareholding of Ord Minnett.”

Ord Minnett’s longstanding arrangements with J.P. Morgan to access research and Australian capital raisings in the form of IPOs, placements and other corporate originations will remain in place to ensure Ord Minnett clients and key business areas continue to maintain a competitive advantage.

Ord Minnett has 230 advisers and 400 staff across ten offices.

IOOF, which has recently installed new chief executive Renato Mota, has seen its share price hammered in the last year mostly due to action taken by the Australian Prudential Regulation Authority over the company failing to act in the best interest of superannuation members.

In a recent interview with The Australian Financial Review Mr Renato said reducing the cost of advice delivery and increasing governance would be key areas for the company in the future.

Merger and acquisition activity, Mr Renato said, would take a back seat to getting these priorities.

“M&A has always been an aspect of the business that has served the business well. No.1 priority right now is rebuilding the governance foundations and infrastructure that support the business,” he said.

Source link Finance News Australia

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