Challenger (ASX:CGF) entered a binding agreement to combine its Fidante multi-affiliate funds management business with Channel Capital, creating a new entity to be named Channel Group, according to a Thursday filing with the Australian bourse.
Fidante, which oversees AU$86 billion in assets, will merge with Channel Capital under Channel Group to form an active investment platform managing roughly AU$150 billion across equities, fixed income, and alternative assets, per the filing.
The company will retain a 45% equity stake in the new group, receive up to AU$172 million in cash payments, and anticipate a pre-tax gain on sale of around AU$100 million in fiscal 2027, the filing said.
Completion is anticipated in the first half of fiscal 2027, pending regulatory approvals.
The company will enter a transitional services agreement of up to 24 months and expects separation and transaction costs of about AU$5 million to AU$8 million in fiscal 2027, the filing added.