Count ups Diverger bid after shareholder pushback

17 November 2023
| By Jasmine Siljic |
expand image

Count has raised its offer to acquire 100 per cent of Diverger, with Diverger’s board “unanimously” recommending the deal is in its best interests

In an announcement to the ASX, Count confirmed it has increased its offer to $1.365 per Diverger share including $0.40 per in cash and a scrip consideration of 1.44 Count shares per Diverger share held.

The increased bid comes after rival bidder COG made a bid of $1.41 per share, which was later withdrawn.

Major Diverger shareholder DMX had been in favour of the COG bid as it felt Count's offer undervalued the company.

DMX reaffirmed its view in a recent investor update: “We believe that this bid by COG at $1.41 validates our view (that we had articulated to the DVR board) that the Count offer at $1.14 materially undervalues DVR and should not be accepted.”

But Diverger favoured the Count offer, with Humphrey saying Count has a matching right to match the offer of any superior bids, leading to today's higher offer. 

Moreover, Diverger is now permitted to pay a fully franked cash dividend of up to $0.10 per Diverger share on or before the implementation of the scheme. 

“The Diverger board continues to unanimously consider that the scheme is in the best interests of Diverger shareholders,” the firm said.

The statement added that Count’s offer provides “compelling benefits”, with both firms expected to see a significantly strengthened market position, enhanced scale and market liquidity. 

Three of Diverger’s shareholders - HUB24, Harvest Lane Asset Management and Kevin White - all expressed their support for the new offer and intended to vote in favour. 

Earlier this week, rival bidder COG Financial Services Limited withdrew its “superior proposal” made last month to merge with Diverger. 

The offer proposed to acquire all of the Diverger shares on issue for $1.41 per share with $0.68 in cash per Diverger share (48 per cent) and $0.73 in COG shares (52 per cent).

Count CEO Hugh Humphrey also previously told Money Management that the deal is expected to reach completion on 27 February.

Read more about:



The content of this field is kept private and will not be shown publicly.

Recommended for you


Stay up to date with Australia’s top news and information source for the wealth management industry


sub-bg sidebar subscription

Never miss the latest news and developments in wealth management industry


Absolutely agree with you on this Les. That's how I see it too. The client facing "new" SOA document might shrink down a...

2 days 17 hours ago
Stephen Eedy

Most advisers are now degree-qualified with many years of actual practical industry experience, and are fully-qualified ...

2 days 17 hours ago
Dominic Widlake

This is all so ridiculous. I have 33 years experience, and have studied hard over the last 4 years to obtain the gov...

2 days 17 hours ago

AustralianSuper and Australian Retirement Trust have posted the financial results for the 2022–23 financial year for their combined 5.3 million members....

5 months ago

A $34 billion fund has come out on top with a 13.3 per cent return in the last 12 months, beating out mega funds like Australian Retirement Trust and Aware Super. ...

4 months 3 weeks ago

The verdict in the class action case against AMP Financial Planning has been delivered in the Federal Court by Justice Moshinsky....

5 months ago