Westpac agrees on Hastings fund management sale to UK firm

(Reuters) - Westpac Banking Corp (WBC.AX) on Friday said it had agreed to sell its Hastings fund management business to a London-based asset manager, in the latest move by a big Australian bank to offload a capital intensive division.

The terms of the deal with Northill Capital are currently confidential and the deal is subject to regulatory approvals, the bank said in a statement to the Australian Stock Exchange

Hastings currently manages about A$12.6 billion ($9.68 billion) in funds, the company said.

The company had also been in talks with property manager Charter Hall Group (CHC.AX) regarding the sale of Hastings, but it ceased discussions in August.

Australian banks have been vying to sell off their capital intensive assets amid stiffer bank capital rules aimed at protecting the sector from financial shocks.

Recently, Australia and New Zealand Banking Group Ltd (ANZ.AX) said it was selling its pensions and investments business to IOOF Holdings (IFL.AX) in a A$975 million deal.

Westpac shares were up about 0.8 percent on Friday, against a 0.5 percent rise in the broader market (.AXJO).

($1 = 1.3012 Australian dollars)

(Reporting by Ambar Warrick in Bengaluru; Editing by Himani Sarkar)