Both parties confirmed on Wednesday that the sale of a 55 per cent interest in Colonial First State (CFS) to global investment firm KKR is complete.
“The sale completion represents an important milestone in CBA’s strategy to focus on its core banking businesses and to create a simpler and better bank,” CBA CEO Matt Comyn said.
“With our partner KKR, we will support CFS in becoming one of the leading superannuation and investment businesses in Australia, offering members greater choice and better value."
CBA first announced the CFS divestment to KKR for $1.7 billion last May but faced backlash from the unions with the ACTU arguing it would not be in the best interest of members for CFS to be majority owned by a foreign private equity firm.
Following the sale completion, CFS confirmed it will look to invest more than $430 million in its business over the next four years, with a key focus on modernising all core technology systems including digital channels and expanding its products and services.
CFS executive chairman Rob Coombe said the business will become a “far more agile operating model”.
“We welcome KKR’s support as an endorsement of our business and our people, which provides us with significant confidence in our plans to achieve improved outcomes for our members’ superannuation and retirement,” Mr Coombe said.
“With a strong platform to build on, the investment program announced today will ensure Colonial First State remains one of the most competitive superannuation and investment businesses in Australia for the long term. It is about transforming how we do things for our members and advisers, digitising the business and improving our competitiveness in the market."
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
