SYDNEY, AUSTRALIA: EQT Holdings Limited (ASX: EQT) had reached an agreement to sell its investment in its Irish business for a nominal sum. The business will be sold inclusive of cash held for regulatory capital purposes of €600,000 to €700,000.
In addition, a managed exit of the regulated activities conducted by the UK business has commenced, by transferring clients of the business to alternative Authorised Corporate Directors, allowing the UK business to focus on unregulated activities as Equity Trustees finalises its exit.
This follows the announcement on 14 August that it Mended to exit its investment in the UK and Ireland.
The Irish business is being purchased via a management buyout led by Kevin Lavery (CEO of the Irish business) with additional investment from Irish-based MFM Capital It is expected the transaction will be completed within the next few months subject to approval by the Central Bank of Ireland (CBI). Equity Trustees’ Managing Director Mick O’Brien said: “While the sale price has not resulted in a premium, it will improve Equity Trustees’ profitability and earnings per share from completion.” In its 30 June 2023 financial statements, the Group wrote-down the value of its stake in its UK and Ireland businesses. The managed exit of the UK business is not expected to complete until the end of FY24.
Mr O’Brien reiterated the commitment to the Australian market: “We remain focused on strengthening our market leading corporate trustee services business in Australia where it continues to deliver excellent value for all stakeholders.”
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