DKN increases stake in Thornton Group
DKN Financial Group has increased its shareholder stake in Thornton Group from 21 to 32 per cent after Thornton Group acquired Adelaide financial planning firm Bowman Financial Planning for $1 million cash and the issue of 2.25 million DKN convertible performance rights.
The performance rights will convert to issuable shares in DKN from March 2010 until March 2011, at which point DKN's stake in Thornton will increase to 40 per cent.
Bowman is expected to make a return of more than $750,000 in pre-tax profit. Tony Moro, the senior financial planner of Bowman, will stay with the merged firm.
The increased equity is part of DKN's strategy to expand through acquisitions and deliver a growing return on investment, according to the company’s statement to Australian Securities Exchange.
This is the second acquisition by Thornton since November 2008, when it acquired a financial planning client base in the Barossa Valley.
Recommended for you
Multiple industry organisations have shared their thoughts on AFCA’s proposed rules amendment, supporting the idea of firms being named publicly when they fail to comply with determinations.
Channel Capital has appointed a head of investment oversight who joins from 14 years at asset consulting firm JANA Investment Advisers.
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
