Sequoia confirms the sale of 80% of Morrison Securities

Sequoia Financial Group has received signed share purchase agreement with digital wealth management platform provider New Quantum Holdings for the sale of 80% of Morrison Securities.

The divestment was first announced to the Australian Securities Exchange (ASX) in March and the company said, at that time, that the transaction would be an opportunity for Morrison to expand its service offering which was restricted due to Sequoia’s balance sheet.

Sequoia has confirmed that, as previously announced, it will receive a total cash consideration of $40.5 million which will be settled in two tranches, with an anticipated financial closing of the initial tranche of 50.1% of Morrison for $25.5 million in cash to be completed by 7 June.

Sequoia has also confirmed that, as of 30 April, Morrison held debt free working capital of more than $10.5 million, required as a part of the transfer of shares.

Further to that, there will be no further changes to the operations and management of the Morrison business during this staged sale process.

In the announcement to the ASX, the firm said that, on full successful completion of the transaction, it would expect to own 20% shareholding in Morrison before 31 August.

“While Sequoia will retain a minority interest in Morrison going forward the business will now benefit from a new owner with the capacity to capitalise on the further growth opportunities for the Morrison’s business,” Garry Crole, managing director of Sequoia, said.

“I am pleased this transaction has cleared the stage 1 completion phase and looks forward to working alongside New Quantum as it looks to add technology solutions to the marketplace to enhance the user experience.”