Deutsche Bank plans to buy a 49.9% stake in Craigs Investments Partners, the largest retail broking firm in New Zealand.The deal comes one year after Craigs' management bought back the business from Dutch bank ABN Amro.Craigs' managing director Frank
Deutsche Bank plans to buy a 49.9% stake in Craigs Investments Partners, the largest retail broking firm in New Zealand.
The deal comes one year after Craigs’ management bought back the business from Dutch bank ABN Amro.
Craigs’ managing director Frank Aldridge said the tie up was a positive step for the company. No sale price has been disclosed.
Deutsche Bank’s New Zealand chief executive Brett Shepherd said the bank was keen to establish a greater presence in New Zealand to take advantage of an expected expansion in the nation’s financial markets.
“Deutsche Bank will gain access to a significant retail and wholesale equities presence in New Zealand, and position both Craigs and Deutsche to capitalise on the growth in the New Zealand capital markets over the next decade,” he said.
Under the transaction, Deutsche will be able to access Craigs’ network of retail clients to increase its capital markets distribution networks.
The deal is proposed to be carried out under a scheme of arrangement, with Craigs’ shareholders to be asked to vote on the plan in May. Existing Craigs shareholders will continue to hold 50.1% of the company with six existing directors continuing on the Craigs board, including executive chairman Neil Craig. Six Deutsche representatives will also join the board.
Craigs is the country’s largest retail broking operation, servicing moe than 50,000 clients. It has moe than $4.5 billion in funds under management and $11 billion of funds under administration.
