Aviva holds the cards in PIH/Centrepoint merger

There’s one week until the vote on the proposed merger between Professional Investment Holdings (PIH) and listed company Centrepoint Alliance, but it remains unclear which way one of PIH’s biggest shareholders will swing.

PIH held its annual general meeting and strategic review in Queensland on Friday, ahead of an extraordinary general meeting next week to vote on the proposed merger.

PIH managing director Grahame Evans said the response from shareholders generally had been “very positive”. The major risk is the uncertainty around what Aviva PLC will do with its close to 20 per cent shareholding — with Aviva PLC’s actions having the potential to stymie the bid.

“I’ve not got any reason to believe the vote won’t go through, but I’m always a cautious person,” Evans said.

“At this stage we don’t know how Aviva PLC will vote its shareholding,” Evans said.

“They’ve had the [offer] document for a short while now, and Robbie [Bennetts] and [Centrepoint chief] Tony Robinson are up in Asia as we speak catching up with them in Singapore.”

“We believe that [the merger] — as the directors have put forward — is in the best interest of all shareholders. The independent experts’ report has also said that it’s fair and reasonable, so we think Aviva will act rationally and see the benefits of the merger,” Evans said.

Aviva PLC retained the 19.4 per cent shareholding when National Australia Bank declined to act on its option over it in September this year.