Sequoia Financial Group (ASX:SEQ) divests 80% of Morrison Securities for $40.5M

Sequoia Financial Group (ASX: SEQ) has entered into a binding agreement to divest 80% of its equity interest in Morrison Securities to New Quantum Holdings for a total cash consideration of $40.5M.

The integrated financial services company will receive a deposit of $1.5M and $9M deposit is payable this month, with $1.65M going to SEQ and $7.35M held in trust.

The transaction will be completed in August and will have no impact on FY 2023 results, but will reduce Group revenue by approximately 20% in FY 2024.

The divestment will allow Morrison to expand its service offering and provide the business with the capacity to capitalise on opportunities.

It will also establish a trust for all employees of Morrison Securities which will hold shares in Sequoia and vest to employees over the next 18-month period.