WESTPAC LOOKING TO SELL HASTINGS TO CHARTER HALL
Written on the 24 July 2017 by David Simmons
Westpac Group (ASX: WBC) has entered discussions with property investment group Charter Hall (ASX: CHC) to sell Hastings Management, a global infrastructure-assets business with funds under management of about $14.3 billion.
Charter Hall is considering the purchase of Hastings following the completion of due diligence and regulatory & board approvals.
Charter Hall says the purchase of Hastings will expand their already large portfolio.
"Charter Hall Group believes the proposed sale provides an attractive expansion opportunity for Charter Hall across real assets finds management," says Charter Hall.
Westpac Group previously tried to sell Hastings in 2015 but the process was abandoned.
Hastings currently manages $14.3 billion worth of funds managed by around 100 professionals and has offices around the world.
Founded in Melbourne in 1994, Hastings has rapidly expanded and now holds investment interests in Melbourne Airport, electricity and gas companies, and more recently the NSW government land registry business.
Hastings was purchased by Westpac in 2002, with 100 per cent of the company acquired by 2005.
Negotiations between Westpac and Charter Hall are currently underway, with updates to be provided following the outcome of those negotiations.
At around midday AEST, Westpac shares were trading down by just over one per cent to $32.04 following their announcement.
Charter Hall is also trading down just over two per cent cent to $5.17.
Author: David Simmons