Source: Radio New Zealand
The Jarden building at the bottom of Queen Street, Auckland Google Maps
Brokerage and financial services firm Jarden is in for a significant restructuring, with the wealth and asset management operations to be split off and the investment banking business to be retained in an employee-owned structure, sources have told RNZ.
The divestment of the wealth management business is complex and expected to meet some resistance from existing shareholders, given it was part of a major shake-up in the industry three years ago.
Jarden’s wealth and asset management businesses merged with National Australia Bank’s (NAB), JBWere NZ, and private equity fund manager Pacific Equity Partners, to form FirstCape in 2023, which has become the parent company of JBWere NZ, Harbour Asset Management and Consilium.
If the restructuring goes ahead it would give control of FirstCape to Pacific Equity Partners and NAB.
Jarden’s staff have yet to be fully briefed on the details, which would be subject to shareholder approval.
However, the deal was expected to meet some resistance as some of Jarden’s existing shareholders would have to relinquish their stake in the investment bank, while others would be left without exposure to the wealth management part of the business.
Existing Jarden staff would likely be asked to reinvest their bonuses in the new structure, which would include sharebroking, portfolio management, investment banking, financial and economic research services.
Jarden Group executive chair Aidan Allen has been approached for comment from RNZ, but has not responded.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand