SYDNEY, AUSTRALIA: Challenger Limited (ASX: CGF) has sold 30% equity interest in Whitehelm Capital, a Fidante Partners infrastructure affiliate manager, to PATRIZIA AG for €32 million. The sale consideration will be paid in cash from PATRIZIA.
“The sale provided a unique and compelling opportunity for Challenger to deliver value to Challenger’s shareholders whilst ensuring continuity for Whitehelm Capital clients and business operations,” Acting Chief Executive Funds Management, Michael Clarke said.
“Fidante Partners has launched multiple new affiliates in the past 5 years and has an exciting pipeline of opportunities, and Challenger will continue to invest into our leading Funds Management platform to support its future growth.”
As previously noted, following completion, Funds Management will derecognise $5 billion2 of funds under management and record a ~A$44 million gain on sale, which will be reported by Challenger as a significant item in the second half of the 2022 financial year.
Funds Management earnings expectations for the 2022 financial year remain unchanged following the sale.
Challenger Limited is an investment management firm focused on providing customers with financial security for a better retirement.
Challenger operates three core investment businesses – a fiduciary Funds Management division, an APRA-regulated Life division and an APRA regulated authorised deposit-taking institution. Challenger Life Company Limited (Challenger Life) is Australia’s largest provider of annuities.