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Street Talk

IOOF taps Citi to sell $82m Australian Ethical stake

Sarah Thompson, Anthony Macdonald and Tim Boyd

IOOF subsidiary Select Managed Funds is selling down its stake in listed Sydney-based fund manager Australian Ethical Investment.

Citi's equities desk was in the market selling a block of Australian Ethical Investment on Thursday evening.ย Jim Rice

Citi's equities desk was in the market on Thursday evening looking for buyers for 14.2 million shares in Australian Ethical worth up to $82 million, according to terms sent to funds.

The shares were being offered through a variable price bookbuild, from an underwritten floor price of $5.24.

Bids would be accepted in 2ยข increments from the floor price up to $5.75.

The price range represented a discount to Australian Ethical's last close of between 12.5 per cent and 4 per cent.

The 14.2 million shares accounted for 12.6 per cent of Australian Ethical's shares on issue. IOOF's Select Funds owned 19.65 million shares or 17.5 per cent of the company as at August 30 last year, according to Australian Ethical's most recent annual report.

Funds were told that books closed on the deal at 6.30pm on Thursday.

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Sarah Thompson has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones. Email Sarah at sarah.thompson@afr.com
Anthony Macdonald co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@afr.com
Tim Boyd is a journalist based in Sydney who writes for the Street Talk column. Connect with Tim on Twitter. Email Tim at tim.boyd@afr.com
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