Wells Fargo will sell its corporate trust business to Australia’s Computershare Ltd for $750 million, the two companies said on Wednesday, as the Wall Street lender shifts its focus to core operations. As part of the deal terms, about 2,000 employees of Wells Fargo’s Corporate Trust Services (CTS) business will be transferred to Computershare, which offers investor services such as share registry.
Wells Fargo’s CTS operation provides trust and agency services for debt securities issued by public and private corporations, government entities and others.
To help fund the deal, Melbourne-based Computershare announced a A$835 million ($637.11 million) entitlement offer. The company expects the deal to add to its earnings per share by at least 15% on a full-year 2021 pro forma basis.
Reporting by Nikhil Subba and Soumyajit Saha, Additional reporting by Nikhil Kurian Nainan; Editing by Matthew Lewis and Arun Koyyur
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