Aus Unity drops resistance to demutualisation
Australian Unity is to finally consider demutualising as part of a move to grow its business, after resisting the trend set by similar organisations for 10 years.
The financial services group is working on a demutualisation report that would be sent to the former friendly society’s members before the end of the year, said Australian Unity managing director Rohan Mead.
“Australian Unity has had a confirmed position of not demutualising in the past, but this has been regularly reviewed by the board,” he said.
“The business is growing and the merger with [insurance company] Grand United has meant we will be canvassing the views of the members as to a demutualisation.”
The valuation of Australian Unity was undertaken last year during the Grand United merger and the combined group is valued at about $500 million, according to the letter sent to the company’s members this week.
However, it is expected the valuation would now be higher, based on this financial year’s performance and future business plans, the letter stated.
The board has warned against opportunistic investors seeking to buy potential shares from Australian Unity members.
In particular the company has warned against approaches from Melbourne-based David Tweed who has targeted shareholders and offered them less than market value for their holdings.
Mead said some Grand United members were approached last year offering cash sums for their membership interests at below the valuation by the independent expert. He would not say if these offers had come from Tweed or his associated companies.
Recommended for you
A Supreme Court of Western Australia jury has issued its verdict regarding unregistered MIS operator Chris Marco, who was on trial for 43 fraud charges, with ASIC stating the verdict ends a “sorry chapter”.
ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago.
Financial advice practices may be hiring younger or professional year advisers as a succession option, but they may find they are unable to put up the capital if the adviser looks to retire.
Any changes to product labelling for sustainable funds must be applied consistently across investor channels, including those used by financial advisers, according to RIAA.
