Wells Fargo to Sell Shareowner Services Business for $227 Million--Update
July 12 2017 - 9:36AM
Dow Jones News
By Razak Musah Baba
LONDON--Wells Fargo & Co. (WFC) agreed to sell its
shareowner services business to the U.K.'s Equiniti Group PLC
(EQN.LN) for $227 million.
Wells Fargo said Wednesday that its shareowner business provides
services like stock transfer and registrar as well as other
corporate actions to more than 1,200 public and private companies
in the U.S. Equiniti, which provides share registration and
associated investor services in the U.K., said the deal would help
it to expand globally.
As part of the deal, more than 400 Wells Fargo workers are
expected to transition to Equiniti.
Equiniti said it would finance the deal from a $160 million
rights issue and $155 million in new debt. Equiniti also said it
expected cost savings of at least $10 million a year by the third
full year of ownership.
The acquisition, pending regulatory and Equiniti shareholder
approvals, is expected to close before the end of the year.
In afternoon trading in London, Equiniti shares added 9.5% to
GBP2.66. Wells Fargo shares slid 0.3% to $54.88 in premarket
trading in the U.S.
-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
(END) Dow Jones Newswires
July 12, 2017 09:21 ET (13:21 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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