Bendigo & Adelaide Bank Ltd. agreed to sell its estates and trusts business managed by its unit Sandhurst Trustees to Melbourne, Australia-headquartered Equity Trustees for A$5 million.
The bank said it has decided to sell the business as it lacked scale relative to others in the market.
Sandhurst Trustees will continue to maintain its funds management and superannuation businesses and its custody business.
Equity Trustees said in a separate release that it has entered into a strategic partnership with Bendigo & Adelaide Bank, which includes a five-year referral arrangement under which it will provide estate planning, management and administration support for the bank's customers.
Subject to regulatory approval, Equity Trustees expects the acquisition to be completed in the first quarter of calendar 2017.
Bendigo & Adelaide Bank said the transaction will not have a material effect on its earnings outlook.
Equity Trustees is part of EQT Holdings Ltd.
As of Dec. 16, US$1 was equivalent to A$1.37.