Financial services firm OverFifty Group (OFG) is selling its advisory business Lifetime Planning after deeming it not an appropriate investment for the group.
The listed company announced late yesterday it is planning to sell all of the assets in Lifetime Planning to Citrofresh International (CTF).
"Over Fifty Group is of the view that Lifetime Planning is sub-scale in relation to the group's core activities and is not considered an appropriate investment for the long-term objectives of the group," a company statement to the Australian Securities Exchange said.
The consideration offered by CTF for the assets is $600,000, which will be funded by a combination of cash and bank debt. No new securities will be issued.
It is expected that the business will be earnings positive in the year ended 30 June 2009.
In addition to the transaction, CTF has developed a six-point strategic plan that offers complementary services to the health and aged care market. The group is also seeking further opportunities.
CTF expects to convene a general meeting of shareholders to seek approval of a change to the company's business and also approve a change of name.
Last month the newly-elected board of OFG severed its relationship with its strategic review partner Macquarie Group.
It is understood the strategic review was undertaken in preparation to sell all or part of OFG.
OFG's board of directors, lead by newly-appointed chief executive John McBain, are undertaking a review of all the company's activities.
