Euroz Hartleys Completes A$145m Capital Markets Sale to BMO

Euroz Hartleys (ASX:EZL) completed the sale of its Capital Markets business to BMO Financial Group, leaving it as a standalone ASX-listed Private Wealth business that intends to return the proceeds to shareholders.

Its subsidiary Euroz Hartleys Limited sold the business to BMO Australia Pty Limited, a wholly owned subsidiary of the Bank of Montreal, for cash consideration of A$145 million, subject to completion adjustments. A strategic Alliance Agreement with BMO, a trading, clearing and settlement agreement and transitional services arrangements commenced on completion. The company will return the post-tax net proceeds through a combination of a fully franked special dividend and an equal return of capital. It now operates under the Euroz Hartleys and Entrust brands with approximately A$5 billion in funds under management and around 60 advisers, and has appointed Alan Logan as CEO.

The release states the expected aggregate return as approximately $0.614 cents per share, mixing dollar and cent units. The final special dividend, return of capital and payment timetable are to be confirmed after month-end procedures, and completion adjustments are not quantified.