Hartleys and Euroz initiate merger transaction

Big West Australian stockbroking and wealth management firm Hartleys appears set to be merged with publicly-listed Euroz.

The firms announced to the Australian Securities Exchange (ASX) that they had entered into a non-binding term sheet for a proposed transaction to combine the two firms.

Under the proposed transaction, Euroz will issue 33 million shares at a deemed issue price of $0.915 per share as consideration for 100% of Hartleys, with Hartley shareholders owning up to 17% of the combined group.

Commenting on the proposed transaction, Euroz executive chair, Andrew McKenzie said combining the two firms would create a dominant West Australian-based financial services company with strong synergies.