11th Apr 2014 06:43
LONDON (Alliance News) - Investec PLC Friday said it will sell the professional finance and asset finance and leasing business of its Australian operations to Bank of Queensland Ltd, a deal that will boost the South African bank's balance sheet.
In a statement, Investec said it will also sell the unit's deposit book.
Investec said it is selling the assets at an AUD210 million premium to tangible net asset value.
Investec Bank Australia Ltd will repatriate its entire net asset value to Investec Holdings Australia Ltd when the deal is done. The consideration price for the sold assets excludes transaction costs and any costs that may arise following the restructure, Investec said.
Investec estimates that when the sale and restructuring is completed, Investec PLC's common equity tier 1 ratio will increase by approximately 1.5% to about 10.6%.
By Samuel Agini; [email protected]; @samuelagini
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