Centrepoint agrees to $20m sale of funding business

In an announcement to the ASX, Centrepoint said the strong performance and opportunities for both the Wealth and Premium Funding businesses were the drivers for the strategic review and have resulted in identifying a better long-term owner for the Premium Funding business in BOQ Finance.

Centrepoint managing director John de Zwart said he is delighted with the sale of Premium Funding to BOQ Finance, saying “it is a strong fit” and “supports the Premium Funding team’s growth plans”.

Further, he said it allows Centrepoint to focus its resources and strong momentum to take advantage of the many opportunities in the wealth market.

“Centrepoint will seek to strengthen and increase its position as one of the fastest growing and most respected wealth advice companies in Australia,” Mr de Zwart said.

“Some of the funds will be deployed to accelerate new organic growth initiatives and the board will also explore capital initiatives.

“The Premium Funding team join a group with a great reputation for customer focus, a broader product offering, and lower cost of funds, which will support the future success of the Premium Funding business.”

Centrepoint said the effective date for the transfer of the business will be 1 January 2017.