CPU +0.04%: the share registry and employee services company announced the sale of their US Mortgage Services business following a strategic review. US-based asset manager Rithm is expected to pay $US720m for the book which is in line with their tangible asset value and with market expectations for the sale. While Computershare expects the deal to complete in around 6 months’ time barring any regulatory issues, they have stuck to guidance for FY24. They decided to sell the unit to focus more on the core business, noting the US Mortgage Services arm has come in below margin and return on capital targets, been more capital intensive and faces greater regulatory risk. The CEO even went as far as saying it was “a bit too macro,” referring to the external factors it faces.
- Computershare will bank ~$1.1b AUD, subject to adjustments, flagging M&A and potential capital returns for shareholders upon settlement.
MM remains neutral CPU
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