Diverger bids for Centrepoint Alliance
Diverger has submitted an indicative proposal to acquire Centrepoint Alliance.
In an announcement to the Australian Securities Exchange, the firm said the offer was for a combination of cash and Diverger shares valued at $0.325 per Centrepoint Alliance share by way of a scheme of arrangement.
This price represented a 30% premium to Centrepoint Alliance’s last close price at 22 June.
Diverger said the potential combined group would mean:
- A significantly strengthened market-leading position with greater operational scale with services being provided to an adviser footprint of more than 1,400 advisers post completion;
- An expansion of core client services utilising the skill and expertise of both Diverger’s and Centrepoint Alliance existing operations team and combined product offerings;
- A platform for enhanced market liquidity for both organisations and;
- A shared ability to leverage the technology capability and learnings from Diverger’s technology partnerships.
“Diverger looks forward to working collaboratively with the Centrepoint Alliance Board to undertake due diligence and execute binding transaction documents in an efficient manner to provide Centrepoint Alliance shareholders with a high degree of certainty, limited conditionality and minimal execution risk.”
The indicative proposal remained subject to due diligence and regulatory and board approval.
Recommended for you
As the first quarter of 2024 comes to a close, Money Management looks back on the corporate regulator’s bans and AFSL cancellations in the financial advice sector.
Insignia Financial is holding ‘relatively steady’ onto its rank as Australia’s second-largest financial advice licensee after the Godfrey Pembroke exit but Count is hot on its heels.
Liberal senator Slade Brockman has said the government needs to have a “cold hard look” at the level of regulation in the financial advice space and the costs of running a business.
FAAA chief executive, Sarah Abood, has warned changes in the first tranche of the QAR legislation around advice fees documentation could create more work for advisers rather than less.