CBA (ASX:CBA) to sell stake in Colonial First State

13/05/2020 10:55:00

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The Commonwealth Bank of Australia (ASX:CBA) has entered into an agreement to sell a 55 per cent interest in Colonial First State to KKR, a global investment firm.

KKR has US$207 billion of assets under management.

The transaction implies a total valuation for Colonial First State on a 100 per cent basis of $3.3 billion, which will result in CBA receiving cash proceeds of approximately $1.7 billion from KKR.

Together, CBA and KKR intend to undertake a significant investment program, strengthening the position of CFS as one of Australia’s leading retail superannuation and investments businesses.

Shares in the Commonwealth Bank of Australia (ASX:CBA) are trading 1.49 per cent lower at $58.82.