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Mega advice business birthed from multimillion-dollar deal
The acquisition of ANZ’s OnePath for $975 million has transformed a company into one of the largest advice providers in Australia.
Melissa Coade
Firms: Gilbert + Tobin and Nomura (IOOF Holdings); undisclosed (ANZ); Baker McKenzie (Morgan Stanley as sole underwriter)
Value: $975 million
Area: M&A, finance, ECM
Key players: Partner Craig Semple (pictured) led the G+T team advising IOOF Holdings. He was assisted by solicitors Robert Sinni and Grace Chia with respect to all aspects of the acquisition.
Other G+T teams advised on the strategic partnership, transitional services and separation arrangements; regulatory matters; debt arrangements and capital raising.
Baker McKenzie partner Craig Andrade led advice for Morgan Stanley, with assistance from Lauren Magraith and Ivo Basoski.
Deal significance:
IOOF’s acquisition of OnePath included a 20-year strategic partnership with ANZ, under which IOOF will distribute its wealth products through ANZ’s banking network.
The $450 million equity capital raising by IOOF launched simultaneously with the acquisition. Morgan Stanley was the sole underwriter of the equity placement.
According to G+T, the deal will transform IOOF into the second largest advice business by both number of advisers and funds under advice.
The deal involved navigating a complex separation of OnePath from the larger ANZ Group. Lead partner Craig Semple said that regulatory considerations also made the acquisition particularly challenging.
He added that it was personally rewarding to work alongside the IOOF senior management team on such a “complicated and challenging deal”.
“We were able to do this by applying the firm’s market leading strengths – M&A, technology, regulatory, banking and equity capital markets – over a relatively short period of time to get this incredibly complicated deal done,” Mr Semple said.
Baker McKenzie partner Craig Andrade, who advised the sole underwriter for IOOF’s capital raising, said the deal was of strategic importance to the company.
“This acquisition cements IOOF’s position as Australia’s leading advice-led wealth manager,” Mr Andrade said.
The deal is expected to close by the end of 2018.
