Australia's Westpac Bank announced plans Thursday to spin off its fund management arm BT Investment Management. Westpac said it will set up a new company which will increase BT's growth and bolster its ability to attract and retain a leading investment management team.
BT is Australia's seventh largest fund manager, managing assets worth about 40 billion dollars (33 billion US). "We've built a leading wealth business in BT and over the past five years it has become a growth engine for Westpac," the bank's chief executive David Morgan said.
"Today's announcement is an important step in maintaining our strong position in funds management and this innovative solution will ensure that BT can continue to provide strong returns across its funds." Westpac and its wealth management arm, BT Financial Group, will retain a majority stake in the new company, which will then be listed, with equity also held by BT investment professionals, institutions and Westpac shareholders.
The float of the new company, expected to take place in late 2007 or early 2008, will have two elements - a retail offer available to Westpac shareholders and an institutional investors offer. The new company is expected to contain BT Investment Management largely in its present form and with the current investment team, including incumbent BT chief executive Dirk Morris.
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