Sequoia delays dividend amid InterPrac sale uncertainty

Sequoia Financial has advised the payment date for the previously declared interim dividend will be delayed from May 15 to June 3.

The interim dividend was previously delayed pending the proposed sale of InterPrac to Conquest Investment Partners; however, the sale agreement was ditched May 1 following ASIC's concerns over the transaction.

At the time, Sequoia said the two parties failed to satisfy all the conditions within the required timeframe.

However, Sequoia now says Conquest has disputed the termination of the agreement.

"On 7 May 2026 the Federal Court adjourned the case management hearing regarding the ASIC proceedings to allow the parties an opportunity to confer regarding the status of the Agreement, due to the purchaser disputing the termination of the agreement by the seller," the Sequoia board said.

"The next case management hearing is scheduled for 29 May 2026. ASIC has subsequently requested the parties confirm the status of the agreement by 18 May 2026 or otherwise seek declarations from the court regarding the effect of the purported termination and the status of the agreement."

Sequoia said its position remains that the agreement has been terminated.

"However, consistent with the company's prior disclosures and to continue cooperating with ASIC and the court process, the directors have determined it is appropriate to further defer payment of the interim dividend pending greater certainty regarding the status of the agreement."

The board added that all details relating to the interim dividend remain unchanged and payment will be made regardless of the outcome of the sale.

Sequoia had announced in March it would offload InterPrac for $50,000 to Conquest.

Following the announcement, ASIC applied to the Federal Court for KPMG to investigate the proposed sale.

ASIC expressed concerns the sale could adversely affect InterPrac's creditors, including its liabilities in relation to complaints sitting with the Australian Financial Complaints Authority (AFCA) regarding the collapse of the Shield and First Guardian Master Funds.

Sequoia previously assured shareholders ASIC's concerns around the sale of InterPrac were "unfounded" and it was working with the ASX to determine whether shareholders were required to approve the transaction.

Selling 100% of the shares in InterPrac to Conquest would have meant the latter taking on all assets and liabilities of the troubled advice practice.

InterPrac currently has a professional indemnity (PI) insurance policy worth $20 million covering the failures of Shield and First Guardian.