Bank of Queensland has scrapped the $65 million sale of its St Andrew’s Insurance business to the beleaguered Freedom Insurance Group.
BoQ said on Monday decision to terminate the deal was mutually agreed after it became clear ‘that the conditions of the transaction would not be satisfied within the time limits contained in the sale agreement.’
Freedom’s stock slumped to a new low this month after it announced it may face a liquidity shortfall in 2019, with $4 million in customer remediations and no new business commissions following damaging revelations at the Royal Commission.
Freedom shares were trading at 2.6 cents at 1050 AEDT on Monday, down from an historic high of 92 cents in July 2017.
BoQ said it will continue to assess its strategic options in relation to St Andrew’s.
‘In the meantime, St Andrew’s continues to be a strongly capitalised business that remains focused on delivering for its customers and corporate partners,’ the company said in a release.
BoQ shares were down 1.13 per cent to $9.63 at 1050 AEDT on Monday.