NAB and Jarden team up to create NZ wealth business
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The news: National Australia Bank and Jarden Wealth and Asset Management are joining forces to create a New Zealand wealth advice and asset management business.
NAB's JBWere New Zealand and BNZ Investment Services businesses will combine with Jarden to form a new entity called FirstCape, which will have 113 advisers.
The numbers: Private equity group Pacific Equity Partners is the third party involved in the deal and will have a 35% stake. NAB and Jarden will have 45% and 20% stakes respectively.
Pacific Equity Partners' investment will be used to make undisclosed payments to NAB and Jarden as part of the arrangement.
The context: NAB said the transaction would create a wealth management business with $NZ29 billion in funds under advice and administration, and $NZ15 billion in funds under management.
The bank also said there were opportunities to grow the BNZ KiwiSaver Scheme through new products. Operational efficiencies are also expected.
The source: ASX announcement
