Austock Group (AGL) has sold its Austock Securities (ASL) business to Intersuisse Holdings, following a two-year overhaul which has resulted in an AGL boardroom reshuffle.
AGL will refocus its funds management operations and the new combined ASL and Intersuisse business will have a national presence as a diversified investment management and financial services group, Austock said yesterday in an announcement to the Australian Securities Exchange (ASX).
Austock Group, that trades under the stock market code ACK, did not disclose ASL's price.
Intersuisse/ASL will comprise securities, corporate finance and asset management operations.
AGL managing director and chief executive Paul Masi will resign his post to lead the new group, which will open offices in Melbourne, Sydney, Perth, Adelaide and the Gold Coast once the sale is completed in mid-March.
However, Masi will remain on the AGL board for an interim period to aid ASL's smooth transition to Intersuisse.
Phillip Brokerage, part of the Singapore-based Phillip Group, owns 46 per cent of Intersuisse.
AGL will remain a publicly listed company. After the sale is finalised, it will become debt free and 'poised to pursue strategic opportunities in the funds management sector', the company said in the statement.
It will focus its fund management operations on Austock Property, led by Nick Anagnostou, and Austock Life, led by Ross Higgins.
AGL has yet to finalise the non-cash accounting adjustments associated with the sale of the assets for normal consideration, including up to $1 million in restructuring costs.
In other changes to the group's board, director Chris Sadler stepped down yesterday and executive chairman Steven Gregg has given notice to retire after the transaction is finalised. William Bessemer has been appointed a non-executive director.
Bessemer, who founded AGL, was replaced by Gregg as chairman in late November 2009 following the collapse of ABC Learning and Timbercorp.
Bessemer was on the boards of both companies. However, at an extraordinary general meeting about three months ago, Bessemer demanded Gregg be removed as chairman.
"Given the new positioning of AGL, Mr William Bessemer has been appointed to the board as a non-executive director," the company said.
"Mr Bessemer has considerable funds management expertise and the board is looking forward to his contribution."
