APFS votes overwhelmingly for Challenger takeover

Associated Planner Financial Services (APFS) shareholders delivered a landslide vote this morning in favour of Challenger Financial Services Group's (CFSG) proposal to acquire the dealer firm.

The overwhelming backing for the deal saw “99 per cent” of shareholders vote in favour of the deal, according to APFS general manager Andrew Creaser.

The breakdown saw 99.9 per cent of ordinary shareholders (24 million shares) support the takeover, with 98.5 per cent of A preference shareholders (83,000 shares) and 100 per cent of Z class holders (Zurich Australia's 10 million shares) also getting behind the deal.

The acquisition is now almost certain to proceed, despite still having to pass a final court hearing in the Federal Court on August 6.

Today's formal vote by APFS' three distinct classes of shareholders followed a general meeting regarding the merger on July 12, and barring no major issues in the Federal Court, will become effective at 2pm on August 13.

Each shareholder will be offered 5.69 Challenger shares for every APFS share, with an independent report back in June by APFS-appointed PKF Corporate Advisers pricing the dealer group at between $76 million and $84 million.

Challenger chief executive officer Chris Cuffe, who steps down to take on the management of the group's wealth management division on Monday, anticipates significant synergy benefits from merging APFS with Challenger-owned medium sized dealer firm Garrisons.

“Combined, Associated Planners and Garrisons will create a top 10 financial planning group, with about 450 planners nationally and funds under advice of more than $7.5 billion,” he says.