WHK Group has entered into a strategic partnership with Macquarie Private Wealth, including paying down WHK’s debt, to assist the dealer group in its expansion plans.
The transaction sees Macquarie Private Wealth become the company’s largest shareholder.
WHK managing director Kevin White said the partnership would give WHK access to Macquarie’s resources and expertise in continuing the company’s Total Financial Solutions (TFS) strategy of acquiring accountancy businesses and helping them broaden their service offering to provide financial advice.
WHK will issue $30 million of convertible notes to Macquarie, which will be used to pay down the company’s debt, lowering its clubbed facility limit from $150 million to $120 million in line with the debt reduction. The remainder of the debt is due to be reviewed in May 2011.
Macquarie will become WHK’s largest shareholder on their conversion within five years and will be able to nominate a director to the WHK board at that time. The convertible notes will be worth approximately 10 per cent of WHK’s capital.
Macquarie will work with WHK to develop its financial services business in Australia and New Zealand.
White said Macquarie was a substantial player in the market in terms of best practice and knowledge around developing specialist products that the company can cost sell into its client base.
WHK group head of financial services John Cowan will oversee the operational aspects of the partnership.
