CHAMP takes controlling stake in Centric
CHAMP Private Equity has taken a controlling share in Centric Wealth , announcing an $80 million placement with the dealer group.
Centric will use the money from the placement to cut its debt and simplify its capital structure, including replacing securities bearing interest and dividend coupons with new equity.
The chief executive of Centric, Mike Pillemer, said: “The investment by the CHAMP funds will enhance Centric Wealth’s commitment to providing the highest level of service to our clients while pursuing new opportunities that fit with our business model and culture.”
The managing director of CHAMP, David Jones, said that the company was committed to recommending to the CHAMP funds to invest in market leading companies such as Centric Wealth, despite the financial instability.
A $100 million rights issue between Centric and CHAMP to raise capital for the dealer group collapsed last year due to global financial uncertainty.
The placement is subject to shareholder approval.
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