Under the sale, Colonial First State Global Asset Management is purchased by Mitsubishi UFJ Trust and Banking Corp for $4.2 billion, subject to completion adjustments, a statement from CBA said. 

The announcement of the sale completion “represents an important milestone towards executing CBA’s strategy to become a simpler, better bank”, according to the bank’s CEO Matt Comyn. 

The total consideration for the purchase price represents a multiple of 19.4 times Colonial First State’s unaudited pro forma FY19 net profit after tax of $218 million as well as a post-tax gain on sale of approximately $1.5 billion. 

CBA said the transaction is expected to deliver an increase of more than $3 billion of common equity tier 1 (CET1) capital, which will result in a pro forma uplift to the group’s CET1 ratio of 68 basis points on an APRA basis, as based on the group’s risk weighted assets. 

This email address is being protected from spambots. You need JavaScript enabled to view it.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.