IOOF brings SFG inhouse as shareholders receive payment
SFG Australia's status as a non-aligned financial advice group will end tomorrow with shareholders set to receive payment as IOOF's purchase of the group reaches its conclusion.
In an announcement released to the Australian Stock Exchange (ASX) late yesterday SFG stated that its shareholders would receive payment from IOOF tomorrow with newly issued IOOF shares set to trade on the ASX from Thursday.
Shareholders were required to elect whether to receive payment as IOOF shares, a cash alternative or a combination of the two with SFG announcing that those shareholders who elected to receive cash did not exceed the aggregate cap of $100 million.
As a result those receiving cash will receive 88.92 cents per SFG share while those receiving shares in IOOF will receive 0.104 shares per SFG share as part of the scheme consideration covering the purchase which has been valued at $670 million.
The purchase of SFG boosts planners working under an IOOF licensee by 129 to 918 and expands the planning groups under its ownership to eight including My Adviser, Lonsdale, Bridges, Wealth Managers, Plan B, Ord Minnett and Consultum which was recently merged with another IOOF licensee - SMF Wealth Management.
At the time of announcing the purchase IOOF said it would retain the SFG Australia brand strategy, operating model and client proposition.
AUTHOR
Jason Spits
Recommended for you
Private markets may be the hot topic of the day but two financial advisers have shared the red flags to consider and why advisers shouldn’t be tempted to invest solely in the pursuit of higher returns.
The corporate regulator has officially launched its new digital portal for financial services businesses submitting AFSL applications, offering a more “efficient, modern and user-friendly” experience.
The advice community has reacted to the re-election of the Labor Party for a second term and called on the incoming Minister for Financial Services to take “decisive action” as Stephen Jones retires from politics.
Advice licensee Finchley & Kent has announced a strategic partnership with technology firm Padua Solutions as licensees are encouraged to broaden their tech usage.
