Bell buys Southern Cross
Bell Financial Group (BFG) has continued on its growth path, announcing today that it has signed heads of agreement to acquire Southern Cross Equities Limited (SCE), which it said will see the creation of one of the largest Australian-owned broking businesses.
According to a statement released on the Australian Securities Exchange today, the total purchase price is expected to be approximately $150 million based on Southern Cross Equities’ unaudited normalised financial results for 2008, although the purchase price is subject to the company achieving certain performance benchmarks over time.
The statement said that the total consideration would be 50 per cent shares and 50 per cent cash, payable in four instalments over three years.
Commenting on the transaction, BFG executive chairman Colin Bell said that it would provide the company with immediate access to a significantly expanded product range and research base.
Bell Potter Securities, which is fully owned by BFG, is Australia’s largest private client broking business with over 125,000 active clients and 290 advisers, while SCE is regarded as one of Australia’s most successful and profitable stockbroking and emerging investment groups.
AUTHOR
Mike Taylor
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
