Westpac's (ASX:WBC) $400m superannuation sale could be nearing the pointy end

Here's the latest on Westpac's sale of BT.

Brooke Cooper

Brooke has been a Motley Fool contributor since early 2021. She holds a Bachelor of Communication with specialisations in journalism and international studies from Charles Sturt University. Brooke aims to inform and excite Aussies keen to grow their wealth by investing in ASX companies. When not writing or researching, you'll likely find Brooke gallivanting around South East Queensland.

Published January 7, 2022 1:57 pm AEDT

The Westpac Banking Corp (ASX: WBC) share price is in the green on Friday amid reports it's getting nearer to offloading its $45.4 billion superannuation leg.

The bank is said to be gearing up to notify the final contestants for its BT superannuation platform later this month.

Right now, the Westpac share price is $21.83, 1.63% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 1.19%.

Let's take a closer look at which financial giants are reportedly in the running to take over the division.

Rising arrow on a piggy bank with a woman holding it and smiling. — Image source: Getty Images

Own Westpac shares? Here's the latest on its super sale

According to reporting by The Australian, Westpac accepted expressions of interest for its super business in December.

The publication claims the bank's next step will be informing entities that made its shortlist. It will then announce more details on the sale and open a data room.

The BT business could reportedly bring in up to $400 million. Though, that figure assumes Westpac will be forking out for the sale's costs.

Apollo Global Management Inc (NYSE: APO), Vanguard, and AustralianSuper are said to be on the line to gain a spot on the shortlist after submitting non-binding expressions of interest.

However, the publication states that it's aware some parties might be interested in organising a bidding consortium ahead of the sale's next round.

The Australian has also been told that Westpac is expecting to finalise BT's buyer in April. Between now and then, it claims that the bank plans to "overhaul" the business.

Additionally, Westpac is said to be rushing to sell the division before the Australian Prudential Regulation Authority undergoes its next annual performance test.

BT's MySuper product failed last year's test. If it also fails 2022's performance test, it will be barred from accepting new members to its MySuper product.

BT recently announced it will drop admin fees on its MySuper and Choice products. The move will save 470,000 members around $20 million a year.

2022 has been good to the Westpac share price so far. It has gained 1.9% since the final close of last year.

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