Westpac Banking Corporation (WEBNF) is inviting bids for its wealth management unit BT Panorama. Citing people with knowledge of the matter, Bloomberg reports that the lender is allowing suitors to view confidential information about the investment platform up for sale. WEBNF shares fell 3.09% to close at $15.70 on March 8.
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Westpac Banking is an Australian company that offers banking and financial services. It operates through the Consumer Bank, Business Bank, BT Financial Group (Australia), Westpac Institutional Bank, Westpac New Zealand, and Group Businesses segments.
BT Panorama Sale
A move to offload Panorama is part of Westpac Banking’s push to exit the wealth, pensions, life insurance, and auto finance segments. The divestment should allow the lender to narrow its focus and exit the pensions and financial planning operations, which experienced a technical malfunction and poor ratings last year.
While offers for the investment platform are due at the end of April, a deal worth $1.1 billion could be reached, according to people familiar with the matter. Bloomberg also reports, however, that details of the sale could change.
According to Westpac, BT Panorama serves more than 230,000 customers and has about A$105 billion in funds under management. Backed by 6,000 advisers, it offers clients services that allow them to review their investment options. Last year, the platform came under scrutiny after suffering service failures that resulted in customers not receiving statements or being able to transact.
Stock Rating
Last month, Jefferies analyst Brian Johnson downgraded Westpac Banking stock to a Sell from a Hold with a $14.19 price target, implying 9.59% downside potential to current levels. According to the analyst, the company should seek an outside CEO despite the risk of further earnings rebasing.
Consensus among analysts is a Hold based on 2 Buys and 2 Sells. The average Westpac Banking price target of $16.18 implies a 3.06% upside potential to current levels.
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