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CBA finally inks deal with 452 Capital

CBA finally inks deal with 452 Capital

(27 May 2005 – Australia) Commonwealth Bank has taken a 30 percent stake in fund management company 452 Capital with the two parties overcoming the glitch that threatened to derail the deal back in March. The purchase of the stake cements the relationship between CBA’s Colonial First State and 452 Capital that began in December 2002 as a strategic alliance which gave retail investors exclusive access to 452 Capital as an exclusive manager through Colonial.

The deal had been mooted earlier this year but talks broke down in March.

CBA group executive, Wealth Management, Stuart Grimshaw, said he was delighted the respective parties had reached an agreement.

He said the bank had been extremely pleased with the results of the alliance over the past two years.

"Taking a minority shareholding in 452 Capital is a natural extension of the existing relationship and will lock in the current successful exclusive distribution arrangement," he said.

"It will also provide the bank a share in the future success of that company," Grimshaw said.

452 Capital founder Peter Morgan will maintain his status as the largest shareholder and his staff will continue to run the company.

452 Capital co-founder Warwick Negus has been appointed chief executive officer of Colonial First State Asset Management.

"He has been involved in the domestic and international funds management business for over 17 years and has a depth of experience that will be invaluable in continuing to build a leading asset management business," Grimshaw said.

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