IOOF Holdings Limited (ASX: IFL) stock fell 2.73% on October 2nd, 2018 after the company completed the acquisition of the Australia and New Zealand Banking Group Limited’s (ANZ) Aligned Dealer Groups (ADGs) and the further arrangements required for the completion of the acquisition of the ANZ One Path Pensions and Investments (ANZ P&I) business.
However, the final completion of the acquisition of the ANZ P&I business, that is been acquired by IFL is projected to take place after successful completion of a successor fund transfer (which separates the ANZ P&I business products from OnePath Life). The whole transaction is expected to be towards the end of March 2019. Moreover, after the completion of acquisition of ANZ ADGs, full legal ownership will be transferred to IFL effective from 1 October 2018. However, the completion will be possible only after an initial payment by IFL of $800 million to ANZ to subscribe for a debt note. Further, ANZ will have to pay a coupon rate of 14.4% to IFL, that is approximately equivalent to 82% of the economic interests in the ANZ P&I business, from 2 October 2018 until the debt note is redeemed. This is anticipated to be after the completion of the acquisition of the ANZ P&I business. Additionally, IFL has reconfirmed that on the back of stable economic conditions, the accelerated completion date for the ADGs and the substantial ‘economic’ completion means that the company continues to target Earnings Per Share accretion as per the projection, done at the time of initial announcement of the transaction. [optin-monster-shortcode id=”wxhmli4jjedneglg1trq”]
Meanwhile IFL stock has fallen 11.73% in three months as on October 2nd, 2018. The group has a market capitalisation of $ 2.83 billion and a price to earnings ratio of 30.49x while it has a dividend yield of 6.7%.
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.