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Sequoia Financial Group Ltd. ( (AU:SEQ) ) has provided an announcement.
Sequoia Financial Group has agreed to sell 100% of InterPrac Financial Planning Pty Ltd to Conquest Investment Partners for $50,000, following a strategic review that found structural, regulatory and commercial challenges undermining InterPrac’s long-term viability. The buyer’s management team is described as highly experienced in financial markets, and Sequoia is consulting with the ASX on whether shareholder approval will be required, which could trigger a general meeting.
Ahead of the sale, Sequoia has written off $4.7 million of intangible assets tied mainly to InterPrac’s customer list amid rising adviser resignations, and warned that a further $7.5 million write-down would be needed if the transaction does not proceed. On completion, InterPrac will transfer with about $1.5 million in cash, a $6 million investment portfolio and a $20 million professional indemnity policy, and will receive transitional compliance and administrative support from a Sequoia unit, which the board believes gives InterPrac a stronger platform to manage remediation, regulatory engagement and ongoing obligations under new ownership than it would have within Sequoia.
The most recent analyst rating on (AU:SEQ) stock is a Hold with a A$0.26 price target. To see the full list of analyst forecasts on Sequoia Financial Group Ltd. stock, see the AU:SEQ Stock Forecast page.
More about Sequoia Financial Group Ltd.
Sequoia Financial Group Ltd is an ASX-listed financial services company that operates across wealth management and related licensee services. Through its subsidiaries, the group has provided financial planning, compliance and advisory support to authorised representatives and advice practices, with a focus on serving advisers operating within Australia’s regulated superannuation and investment markets.
Average Trading Volume: 185,369
Technical Sentiment Signal: Sell
Current Market Cap: A$28.19M
For detailed information about SEQ stock, go to TipRanks’ Stock Analysis page.