Euroz Hartleys completes A$145 million Capital Markets sale to BMO
Euroz Hartleys Group Limited (ASX: EZL) has today completed the sale of its Capital Markets business to BMO Australia Pty Limited, a wholly owned subsidiary of the Bank of Montreal (“BMO”), for cash consideration of A$145 million, subject to completion adjustments. The seller was its wholly owned subsidiary, Euroz Hartleys Limited.
The announcement is dated 2 November 2026. A major strategic transformation has moved from pending to done, with the cash consideration now tied to a completed transaction.
The binding sale agreement signed in June set out the A$145 million cash price, a four-year Alliance Agreement with BMO, and the commitment to return all post-tax net proceeds to shareholders.
Key highlights from the announcement:
- Euroz Hartleys has today completed the Capital Markets sale to BMO for A$145 million, subject to completion adjustments.
- The company continues as a focused, independent and ASX-listed Private Wealth business under the Euroz Hartleys and Entrust brands.
- The strategic Alliance Agreement with BMO, the trading, clearing and settlement agreement, and the transitional services arrangements commenced on completion.
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Shareholder returns: special dividend and return of capital
Euroz Hartleys will return the post-tax net proceeds of the transaction to shareholders through a combination of a fully franked special dividend and an equal return of capital.
Completion followed the non-waivable shareholder vote and Bank Act approval that stood between the signed deal and closing, along with an independent expert conclusion that the sale was fair and reasonable.
The company anticipates that shareholders will receive in aggregate approximately $0.614 cents per share. The final amounts and the payment timetable are yet to be confirmed.
| Component | Detail | Status |
|---|---|---|
| Special dividend | Fully franked | n/a |
| Return of capital | Equal return of capital | n/a |
| Aggregate per share | Approximately $0.614 cents | Anticipated |
| Payment timetable | n/a | To be confirmed |
For investors, the direct and tangible return of capital is the key takeaway from the completion.
Understanding special dividends and returns of capital
A special dividend is a one-off payment made from a company’s profits, separate from regular dividends. When it is fully franked, franking credits attached to the payment can offset tax for eligible shareholders.
A return of capital works differently. It hands back part of the money shareholders originally invested, rather than distributing profit.
The split matters because the two components can be treated differently for tax purposes. The announcement refers to expected tax treatment for shareholders, and it states that it does not constitute tax advice.
- Special dividend: a one-off distribution of profits.
- Franking: credits that can offset tax on the dividend.
- Return of capital: a repayment of part of invested capital, not profit.
A focused, independent Private Wealth business
Euroz Hartleys now continues as an independent ASX-listed wealth management business operating under the Euroz Hartleys and Entrust brands. It serves individuals, family offices, and ultra and high net worth clients.
Key figures from the announcement:
- Approximately A$5 billion in funds under management
- Around 60 advisers
- A 71-year heritage of providing quality advice
As a standalone wealth management business, Euroz Hartleys has greater strategic focus, direct control over capital allocation and increased flexibility to invest in advisers, technology, client outcomes and future growth initiatives.
The Chair also said the business is only strengthened through its alliance with BMO.
Leadership changes and Chair’s view
Chair Jay Hughes described the sale as a turning point for the company.
Jay Hughes, Chair of Euroz Hartleys
“The sale of our Capital Markets business to BMO is a defining moment for Euroz Hartleys. We are now uniquely positioned to redefine our position as a pure private wealth business which is only strengthened through our alliance with BMO…”
The announcement also outlined changes to the board and management:
- Mr Alan Logan has been welcomed as the new CEO.
- Messrs Fry and Bartley have joined the board.
- Ms Robin Romero and Ms Fiona Kalaf are outgoing directors, having served 5 and 4 years respectively.
- Mr Andrew McKenzie and Mr Tim Bunney are expected to continue as Non-Executive Directors while they transition to BMO.
What happens next for Euroz Hartleys shareholders
Euroz Hartleys will provide a further market update shortly following completion of all relevant month-end procedures. In that update, the company will confirm the final amount of the special dividend and the return of capital, and the timetable for their payment.
- Further market update following completion of all relevant month-end procedures, confirming final amounts and the payment timetable.
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