IOOF Holdings Limited (ASX: IFL) shares are on watch this morning after the wealth manager's latest update on its OnePath acquisition.
What did IOOF announce yesterday?
IOOF received the approvals from the Australian Prudential Regulation Authority (APRA) to hold the controlling stake in OnePath Custodians Pty Ltd and Oasis Fund Management Ltd.
Australia and New Zealand Banking Group (ASX: ANZ) owns OnePath but is looking to sell it to the wealth manager.
IOOF shares will be worth watching tomorrow morning following the update which confirms the sale after a two-year process.
The Aussie bank is selling its Wealth Pension and Investments business (P&I) to IOOF for a sum of $825 million. That follows the steep $125 million haircut taken by the bank after the initial $950 million deal was announced in October 2017.
Having received APRA approval, IOOF and ANZ are looking to complete the sale on 31 January 2020.
What did APRA say about the deal?
The financial regulator ticked off the IOOF transaction in the final major hurdle for the sale.
APRA said IOOF had taken steps to improve governance and look out for its members. The regulator's seal of approval is significant as IOOF continues to try and right the ship after a disastrous 2018.
How have IOOF shares performed this year?
IOOF shares have been outperforming on the S&P/ASX 200 Index (INDEXASX: XJO) this year. The group's share price is up 55.27% since the start of January and has raced ahead of the benchmark index.
The ASX 200 is up a tidy 21.09% this year but can't keep up with IOOF.
IOOF shares have done particularly well, given the struggles for the ASX wealth managers.
AMP Ltd (ASX: AMP) and Challenger Ltd (ASX: CGF) have slumped lower this year while only Magellan Financial Group Ltd (ASX: MFG) has outperformed IOOF.
Those same IOOF shares could be on the move in early trade following yesterday's APRA update.
