Australia's ANZ to sell majority stake in pensions business for initial $596 million

FILE PHOTO: A pedestrian is reflected in the window of a branch of the Australia and New Zealand Banking Group (ANZ) in central Sydney, Australia, October 25, 2017. REUTERS/Steven Saphore

(Reuters) - Australia and New Zealand Banking Group Ltd <ANZ.AX> said on Thursday it entered a term sheet to transfer an 82 percent stake in its pensions unit (P&I) and ownership of its aligned dealer groups (ADG) to wealth manager IOOF Holdings Ltd <IFL.AX>

The deal is to take effect from October 1 and the lender will receive an initial payment of A$800 million ($596.40 million).

ANZ announced the sale of the P&I and ADG businesses to IOOF in mid-October 2017.

(Reporting by Aaron Saldanha in Bengaluru; Editing by Muralikumar Anantharaman)