Simon Power leaves board as NZX completes Superlife buy
Former Cabinet Minister Simon Power will resign from the NZX [NZX] board to avoid any conflict of interest as the stock market operator completes its acquisition of SuperLife to expand its funds management business.
Power, who is also general manager of Westpac's New Zealand private wealth management business, will formally step down from Wellington-based company's board at its annual meeting in May, it said in a statement. The move comes after NZX added $1.27 billion of funds under management and 41,000 members via the acquisition of SuperLife, and plans to launch a series of domestic and international debt and equity exchange-traded funds over the next year.
"On behalf of the board I would like to acknowledge and thank Simon for the valuable contribution that he made during his two and a half years on the board, and as a member of the regulatory governance committee," chairman Andrew Harmos said. "While sensible protocols can be relied on in most cases, Simon's direct management accountability for a competing business was the defining factor in his decision to resign."
The SuperLife business will be rolled into NZX's $400 million Smartshares unit, and the merged entity will be managed separately from the capital markets business. The stock market operator expects the purchase add to earnings in the 2015 financial year.
NZX paid $20 million up front for SuperLife, of which $10 million was in cash and $10 million in shares at $1.21 apiece, and will pay a further $15 million over the next three years if the business hits retention and growth of funds under management targets, of which $5 million will be in shares and $10 million in cash.
Shares of NZX last traded at $1.15 and have fallen 7.3 percent over the past year.