E-Shares fails in bid to enter financial planning
Onlineshare trading group E-Shares has had its plans to push into the financial planning market thwarted after its agreement to purchase Norgard Clohessy Financial Planners (NCFP) was abandoned.
The two groups terminated the agreement last month after they did not see eye to eye on terms to meet the conditions of the sale.
In February, E-Shares agreed to pay $5.5 million in cash and 18.3 million in shares for the Perth-based planning group.
NCFP in turn entered into agreements to purchase two financial planning practices and an accounting practice in Melbourne, and a further financial planning practice in Perth.
NCFP managing director Patrick Canion has confirmed the group will push ahead with its planned acquisition of the four practices. Canion says the group will look for alternative sources of capital to fund the acquisitions in the wake of the failed agreement with E-Shares.
Neither E-Shares or NCFP was willing to comment on the specific reasons behind the breakdown of negotiations.
E-Shares managing director David Breeze says the group will now look to pursue other investment opportunities in the financial services industry.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
