Diverger has withdrawn its bid for Centrepoint Alliance after discussions failed to progress.
The Diverger bid, made in June, was for a combination of cash and Diverger shares valued at $0.325 per Centrepoint Alliance share by way of a scheme of arrangement. However, in response, Centrepoint said it failed to reflect the firm’s strategic value.
Earlier on Monday, Centrepoint Alliance released a statement that said “conversations had not progressed” between the two firms.
“Discussions with Diverger have not progressed to a point where Centrepoint Alliance has any further update to shareholders. Centrepoint Alliance reiterates its view that the Diverger non-binding indicative offer does not adequately reflect the firm’s value.”
Later in the day, Diverger released its own statement that it was unable to progress with Centrepoint Alliance as it was unable to reach agreement and had not been granted access to due diligence. It also understood that assumptions raised in the indicative proposal may be unlikely to be reached.
“Without meaningful engagement by the Centrepoint Alliance board, Diverger is not able to progress the indicative proposal.
“Diverger continues to believe there are compelling benefits to both Diverger and Centrepoint Alliance shareholders and adviser stakeholders in combining the two entities to create a market-leading advisor business with greater scale, expanded service offering and enhanced market liquidity.”
