- Sequoia Financial Group (SEQ) enters an agreement to divest 80 per cent of its equity interest in Morrison Securities to wealth manager New Quantum
- SEQ will pass the interest onto New Quantum in return for a total cash consideration of $40.5 million
- Sequoia says the opportunity for Morrison to expand its service offering was restricted by the SEQ balance sheet
- The company says it received several expressions of interest in acquiring part or all of Morrison
- Shares in SEQ are up 10.68 per cent, trading at 57 cents at 1:47 pm AEDT
Sequoia Financial Group (SEQ) has entered a binding agreement to divest 80 per cent of its equity interest in Morrison Securities to wealth manager New Quantum.
SEQ will pass the 80 per cent interest to New Quantum in return for a total cash consideration of $40.5 million.
SEQ’s board said the opportunity for Morrison to expand its service offering was restricted by the SEQ balance sheet.
The company selected New Quantum due to its willingness to allow SEQ to maintain an active role in the development and growth of the business.
Sequoia said $500,000 of the purchase price will go towards establishing a trust for all employees of Morrison Securities.
The divestment, with completion anticipated for August 2023, is expected to have no impact on SEQ’s 2023 financial year results but will see the company’s current consolidated group revenue reduced by around 20 per cent in the 2024 financial year.
Shares in SEQ were up 10.68 per cent, trading at 57 cents at 1:47 pm AEDT.