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BRIEF-CBA Updates On Divestment Of Australian Life Insurance Business

Published 23/08/2019, 09:17 am
© Reuters.  BRIEF-CBA Updates On Divestment Of Australian Life Insurance Business
CBA
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Aug 23 (Reuters) - Commonwealth Bank of Australia CBA.AX :

* UPDATES ON DIVESTMENT OF AUSTRALIAN LIFE INSURANCE BUSINESS

* AGGREGATE PROCEEDS FOR CBA FROM TRANSACTION ARE EXPECTED TO BE $2,375M, A REDUCTION OF $150M FROM ORIGINAL SALE PRICE

* CBA AND ASB AGREED TO GRANT AIA AN OPTION TO EXTEND RESPECTIVE AUSTRALIAN AND NEW ZEALAND DISTRIBUTION AGREEMENTS FROM 20 YRS TO 25 YRS

* UPON COMPLETION REVISED TRANSACTION PATH IS EXPECTED TO HAVE RELEASED ABOUT $1.6 BILLION - $1.8 BILLION OF COMMON EQUITY TIER 1 (CET1) CAPITAL

* CBA TO RECEIVE FROM DEAL ABOUT $750 MILLION OF PROCEEDS AND DISTRIBUTIONS BY END OF 1H FY20 AND REMAINING $1,625 MILLION BY END OF FY20

* REVISED TRANSACTION PATH FOR COMMINSURE LIFE DOES NOT IMPACT SALE OF GROUP'S 37.5% EQUITY INTEREST IN BOCOMMLIFE

* IMPLEMENTATION OF JOINT CO-OPERATION AGREEMENT EXPECTED BEFORE END OF 1H FY20 AT WHICH TIME CBA WILL RECEIVE AN UPFRONT PAYMENT OF $500 MILLION

* CBA AND AIA WILL ENTER INTO A JOINT CO-OPERATION AGREEMENT

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