Chinese state-owned entity casts shadow on Madison sale
The sale of Madison Financial Group has hit a snag in the form of a Chinese Group which has asserted a competing security interest over the group which has acted as a brake on the sale of the dealer group by OneVue.
OneVue informed the Australian Securities Exchange (ASX) today that the sale of Madison was imminent and was likely to be completed within 14 days.
It said that one condition precedent for the sale, however, was to obtain consent to the sale from Taiping Trustees Limited – a Chinese state-owned financier that was a creditor to Sargon Capital or, alternatively a court order to permit the sale.
“The reason for this condition is that China-Taiping very recently asserted a competing security interest in the shares of Madison Financial Group,” it said.
“While OneVue maintains that is has a priority security interest and is entitled to the whole of the sale proceeds, in order to avoid disrupting the sale process, OneVue and the receivers intend to work closely with China-Taiping and its advisers to facilitate the sale.
“It is presently envisaged that following completion of the sale, the competing claims to the proceeds of the Madison sale will be resolved either by agreement or by court determination.”
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
