Backers plan to block sale of Hastings Funds Management

Investors in Hastings Funds Management, which controls $5.6 billion of prized Australian infrastructure, are believed to be planning to scupper Westpac’s plans to sell the business to a British private equity firm.

Sources told DataRoom that Northill Capital had been chosen by Westpac as the buyer of Hastings, ousting local firm Morrison, one of the two final contenders to buy the operation.

However, investors were believed to be unhappy about the decision, and might see it overturned.

It comes after exclusive talks had earlier broken down between Charter Hall and Hastings to buy the business.

Investors had objected to the property fund manager as a buyer and it walked away.

Following those negotiations, investors in the TIF fund called an EGM and removed Hastings as manager. The understanding is part of the discontent centres on the departure of top managers from Hastings.

Northill has been negotiating to gain control of the Utilities Trust of Australia fund, which controls assets such as the NSW electricity transmission business TransGrid and Perth Airport.

But they have waded into a battle between Hastings investors and its management where they have been lobbying for better terms of their management agreement.

Morrison and Westpac declined to comment.