MyState Limited will sell its Tasmanian financial planning arm in a move it says will allow it to focus on areas of competitive advantage.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
It said on Monday it had entered a sale agreement under which Fiducian Group Limited would buy MyState's financial planning business in Tasmania for about $3.5 million.
"This is a strategic move for the MyState Group which allows us to simplify our business and invest for growth in the areas where we can have a competitive advantage," MyState chief executive and managing director Melos Sulicich said.
"Through our Tasmanian Perpetual Trustees brand, we are building a simplified national and highly scalable wealth management business focused on managed funds and trustee services."
MyState said it expected the financial planning arm's sale would be broadly neutral in net profit after tax terms for MyState in future years.
It said Fiducian would acquire the MyState financial planning client book, which had more than $340 million in funds in advance.
The transaction was expected to be completed before June 30.
MyState Limited is an ASX listed holding company which also includes MyState Bank.
Fiducian is also ASX listed.
MyState described it as a leading national financial services company with more than $2.7 billion in funds under advice and 40 practices nationally.
Mr Sulicich said: "We believe (Fiducian's) Tasmanian footprint and dedicated financial planning focus provide a great fit for our customers and staff."
"We look forward to working with Fiducian to ensure that the transition for our customers is smooth, simple and straightforward."