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BRIEF-Westpac Banking Corp Sells Lenders Mortgage Insurance Business

· 03/17/2021 20:08
BRIEF-Westpac Banking Corp Sells Lenders Mortgage Insurance Business

- Westpac Banking Corp WBC.AX:

  • WESTPAC SELLS LENDERS MORTGAGE INSURANCE BUSINESS

  • TRANSACTION IS EXPECTED TO ADD APPROXIMATELY 7BPS TO WESTPAC'S COMMON EQUITY TIER 1 CAPITAL RATIO

  • WILL RECORD A LOSS ON SALE IN FY21 FROM SEPARATION AND TRANSACTION COSTS ALONG WITH $84 MILLION WRITE DOWN IN GOODWILL

  • SALE PRICE WILL BE AT BOOK VALUE WHICH WILL BE DETERMINED AT COMPLETION

  • TRANSACTION ALSO INCLUDES SMALL, FIXED ANNUAL PAYMENTS TO WESTPAC OVER NEXT 10 YEARS

  • COMPLETION OF TRANSACTION EXPECTED TO OCCUR BY END OF AUGUST 2021

  • TRANSACTION PROCEEDS WILL BE DETERMINED ON BASIS OF BOOK VALUE AT COMPLETION, WHICH IS EXPECTED TO OCCUR IN 2H21

  • WILL ENTER INTO 10-YEAR EXCLUSIVE SUPPLY AGREEMENT FOR ARCH CAPITAL GROUP TO PROVIDE LENDERS MORTGAGE INSURANCE TO CO

Source ( https://bit.ly/3lz0j4o)

Further company coverage: WBC.AX


((Reuters.Briefs@thomsonreuters.com;))