Australia’s Perpetual said on Wednesday it would sell its corporate trust and wealth management businesses to global investment firm KKR & Co for A$2.18 billion ($1.44 billion).

The Australian fund manager said its board unanimously recommended shareholders to back the scheme in the absence of any superior proposal, adding that an independent expert had concluded that it was in their best interests.

The deal will make the company “a leaner, debt-free, global, multi-boutique asset management firm managing A$227 billion in assets under management,” Perpetual said in an exchange filing.

Shares of the company fell 3.5% to A$23.19 by 0057 GMT, while the benchmark stock index .AXJO was up 0.1%.

Perpetual said its CEO Rob Adams would retire following a period of transition upon the completion of the deal.

The transaction including the separation of its two units will raise proceeds which Perpetual will use to pay down its debt, along with funding the separation and transaction costs.

($1=1.5170 Australian dollars)

Reuters