Craigs Investment Partners has sold a 49.9 per cent stake in its business to Deutsche Bank - one year after management bought back the business from Dutch bank ABN Amro.
Craigs, New Zealand's largest broking firm, officially announced the long-expected deal yesterday but would not comment on the sale price.
Craigs managing director Frank Aldridge said the deal was a complementary fit and would allow Craigs to tap into Deutsche's global research investment banking platform.
It would also further Craig's expansion into the Australian market. "We will be using the transaction to put our first person into Australia," he said.
The deal would not result in any job losses for Craigs' 310 staff or any changes to its management team.
"In fact, the reason we are doing it is to grow the business."
He hoped the transaction would allow Craigs to double the funds under management in its private wealth division. Craigs presently has $5 billion funds under management and $12 billion in funds under advice.
Deutsche Bank New Zealand chief executive Brett Shepherd said the alliance would allow the bank to access a strong distribution network allowing it to sell new investments like Australian initial public offerings into New Zealand.
"It will create the ability to enable New Zealand investors to access Australian products," he said.
Craigs will retain the same name and both businesses will continue to be run on an independent basis.
But its board will drop two Craigs directors and add six Deutsche directors, bringing the board to 12 people.
Craigs changed its name last August after management bought 50 per cent of the business back from ABN Amro in April. ABN pulled out of the New Zealand market in the wake of the global financial crisis. It had owned the stake since February 2001.
