Commonwealth Bank has agreed to sell its Count Financial advice business for $2.5 million, but will still manage customer remediation related to past issues.
The lender says it will sell the unit to CountPlus Limited, an ASX-listed financial services firm in which it is the largest shareholder.
CBA will provide a four-year, $200 million indemnity to cover remediation claims, representing a potential $56 million extra on top of a previously disclosed $144 million provision.
Count Financial is expected to incur a $13 million loss in the current financial year.
CBA will slowly divest its 35.9 per cent stake in CountPlus once the deal is complete and is also looking to offload its Colonial First State, Financial Wisdom and Aussie Home Loans businesses.
CBA paid $373 million for Count Financial in 2011.
Barry Lambert, who at the time held a 17.74 per cent stake in the company he founded 30 years earlier, is currently CountPlus’s second largest shareholder with a 4.89 per cent stake.
CountPlus shares spiked as much as 47.4 per cent when the market opened on Thursday and, at 1033 AEST, were still 29.9 per cent higher at 63 cents.
Shares in CBA were up 0.23 per cent at $80.05, in line with the broader financial sector on the ASX.