PRINCIPAL FINANCIAL GROUP AGREES TO THE SALE OF BT INVESTMENT
Bank Macquarie Bank to Purchase Investment Banking Arm of BT Australia Group
DES MOINES, Iowa, June 24 /PRNewswire/ -- The Principal Financial Group announced today it has agreed to the sale of Bankers Trust Investment Bank in Australia to Macquarie Bank, following negotiations with the Investment Bank's current owner, Deutsche Bank (vendor to The Principal) and discussions with BT's management team.
The final purchase price will be determined at completion and will be equivalent to Adjusted Net Assets, expected to be approximately $A100 million (approximately $US 66 million).
On 18 June 1999 The Principal had announced its agreement to purchase the Bankers Trust Investment Bank as part of the purchase of the Bankers Trust Australia Group, and also announced its intention to sell the Investment Bank. The Principal will retain BT Funds Management.
Macquarie Bank is the only Australian-owned full service investment bank. It employs more than 3000 people in Australia and offshore, and recorded after tax profits of A$ 165 million for the year ending March 31,1999.
Bankers Trust's Investment Bank include sales and trading -- including Foreign Exchange, debt markets, derivatives and proprietary training -- equities, finance and advisory areas.
"We're very pleased with this speedy and positive resolution for the BT Investment Bank and its clients," said David Drury, Chairman and CEO of the Principal Financial Group. "While the Investment Bank was part of the offering of BT Australia Group, The Principal made it clear it did not intend to keep this business, because it does not fit with our business strategy. Sale to Macquarie Bank will be in the best interests of its clients and employees."
The Principal Financial Group will proceed with its purchase of the Bankers Trust Australia Group from Deutsche Bank, and the operation of BT Funds Management.
"This has been an exciting time, with our agreement to purchase BT Australia Group and this subsequent sale of the Investment Bank. We look forward to long-term success in partnership with BT Funds Management for investors in Australia," Drury said.
The sale of the Investment Bank to Macquarie is expected to be completed third quarter 1999. It is conditional upon regulatory approvals in Australia and the close of the BT Australia Group sale to the Principal Financial Group.
The Principal Financial Group is a diversified family of financial services companies with more than A$128 billion (US$84 billion) in assets under management. Worldwide, over 10 million customers turn to the Principal Financial Group for financial services and retirement products. The Principal Financial Group is a Fortune 500 company and one of the Most Admired Companies in America, according to Fortune Magazine.
SOURCE The Principal Financial Group
/CONTACT: Susan Houser, Media Relations Manager of The Principal Financial Group, 515-248-3587/
CO: Principal Financial Group; Bankers Trust Investment Bank; Macquarie Bank ST: Iowa, Australia IN: FIN SU: TNM
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