Cuffe takes reins at Challenger as merger pushes on
CPH Investment Corporation(CPHIC) chief executive Chris Cuffe will take on the role of acting chief executive atChallenger following the announcement last week that the two groups has signeda merger implementation agreement.
The deal will also result in the new group being renamed the Challenger Financial Services Group, with Challenger managing director Bill Ireland announcing he will step down immediately but will remain as a non-executive director on the Challenger board until the end of the merger.
Challenger will also pay $1.25 million to Ireland, through his company, Universal Equity, which Challenger says has provided the services of Ireland to the group.
Ireland will be replaced by Chris Cuffe who the board appointed as acting chief executive until the conclusion of the merger.
However, under those arrangements, Cuffe will be under secondment from CPH management to Challenger and will hold no executive responsibilities to CPH management during that time. Challenger, CPH management or Cuffe will also be able to terminate his contract with seven days notice.
The board of Challenger and management of CPH informed the Australian Stock Exchange (ASX) last week, stating the deal still had to receive approval from Challenger shareholders, CPHIC unitholders.
According to the two groups, the Challenger name will stay with the group, with the merger resulting in the group having a market capitalisation of approximately $1.1 billion, which it claims places it within the top 100 entities by market capitalisation on the ASX.
Details of the merger will be sent to shareholders of Challenger and unitholders of CPHIC in May, with meetings expected in June and the merger to be complete by July 1.
AUTHOR
Jason Spits
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