ASB abandons Aegis sale
ASB has abandoned plans to sell its WRAP platform Aegis to Perpetual claiming the two companies had been "unable to reach agreement on acceptable terms and conditions of sale within the proposed timeframe."
Wednesday, January 12th 2011, 9:33PM
ASB head of group investments Laurie Mellsop said the bank had decided to withdraw from any further negotiations with Perpetual and that it "is not pursuing the sale of Aegis to any other party."
Perpetual Portfolio Management chief executive officer Patrick Middleton said ASB "decided they wanted to pull it from the market" just before Christmas.
"They've obviously made a commercial decision," Middleton said.
He said that Perpetual will now "step back and reflect" in the wake of the collapsed acquisition.
ASB announced back in March 2010 that in the wake of a review of the banks business it would consider bids for the WRAP platform.
In September 2010 Pyne Gould Corporation's Perpetual subsidiary entered into bid talks with ASB, with the PGC chief executive Jeff Greenslade saying, "For Perpetual, a customer of Aegis since 2003, the opportunity to develop the Aegis business further from this sound position would support our long term wealth management strategy."
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