Monday 24th December 2018
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First NZ Capital is adding derivatives trading to its bow with the purchase of specialist derivatives broking house OMF to achieve a strategic consolidation of New Zealand's private wealth management and investor service providers.
The Christmas Eve deal discloses no valuation for OMF, which trades derivative financial instruments covering foreign exchange, carbon, options, equities, CFD (cash for difference) contracts, and futures markets.
OMF started life as a division of Westpac, split out in 1987 to become Ord Westpac Futures, and was eventually bought by Australian broking house Ord Minnett, in 1993. A management and private equity buyout created OMF Financial in 2001.
Itself the spawn of former New Zealand heavyweight broking firm Jarden & Co, FNZC is one of the country's best-resourced broking and wealth management houses and one of the few that retains a deep bench of equities analysts.
OMF was a "perfect fit", said FNZC chief executive James Lee, with negotiations having begun in April.
"There is limited overlap in what the two firms provide, so with OMF joining our business we will be able to offer the clients of both companies an even better range of products and services", with derivatives a "natural hedge tool" in the more volatile investment environment that has been emerging in the last year.
FNZC is acquiring 100 percent of the shares in OMF, but is not acquiring its interbank broking business, which will be separated from the rest of the business ahead of the transaction occurring.
OMF will retain its own brand and current base of business operations in Auckland.
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