DeakinFinancial Serviceshas confirmed speculation it is in discussions withAustChoice Financial Servicesregarding a possible acquisition, after an announcement to theAustralian Stock Exchange.
“We are in preliminary discussions with AustChoice. They have substantial funds under administration, so a merger has obvious attractions and would give us a strong platform on which to move forward,” Deakin executive chairman Rob Hunwick says.
“[However] at this point the discussions are at a preliminary stage and no terms for the acquisition have been settled or agreed by the parties,” he adds.
Deakin has $300 million in funds under advice (FUA) compared to AustChoice’s more than $1 billion under advice.
Hunwick says it was AustChoice, which holds close to nine per cent of Deakin’s listed stock through its administratorSMF Funds Management, which made the approach for a possible deal.
Hunwick adds the main issues on reaching a deal, which he expects to happen “fairly soon”, will centre on price — likely to involve some form of stock option — and the business strategy going forward.
