IWL fails to acquire JDV
IWL’s plan to take full control of rival online broker JDV has failed, after the deal was blocked by two of JDV’s major shareholders.
Nonetheless, the advisory software and online broking firm’s offer through IWL Broking Solutions (IWLBS), which closed last Friday night, has still given it a 37 per cent interest in JDV, making it the company’s largest shareholder.
IWL will not take full control of JDV, which is responsible for the online trading services of Westpac Bank, because JDV’s other two major shareholders, Westpac and Royal Bank of Canada, which each hold 28.66 per cent of the company, rejected IWL’s scrip offer.
“As IWLBS did not receive the requisite level of acceptances, IWLBS is not entitled and, accordingly, will not proceed, to compulsory acquisition,” IWL said in a statement released today to shareholders.
The rejection is a blow to IWL’s strategy to augment its level of participation in the Australian online stock broking market.
For the past eight months, IWL has posted extraordinary earnings updates every month to try and entice JDV shareholder’s into accepting the takeover deal.
IWL hoped to add JDV to its recent acquisition of Avcol Stockbroking from the now re-named Rivkin Financial Services, which was re-listed on the Australian Stock Exchange as Scarborough Equities on May 20, 2005.
Despite the rejection, IWL chief executive Otto Buttula has indicated that his plans to acquire JDV remain.
Recommended for you
Amid regulatory simplification, ASIC has outlined its efforts in making regulation clearer and accessible, as well as unveiled a roadmap for financial advisers on their obligations.
As advisers attempt to tackle mounting operational costs and achieve greater efficiency, the FY25 reporting season has revealed a growing focus on managed accounts among major firms.
Wrapping up the reporting season for the 2024–25 financial year, Money Management rounds up the results of Australia’s listed platforms.
Investment platform Praemium has announced an integration with fund services firm Clearstream’s platform into Praemium Spectrum, expanding advisers’ access to global funds and greater operational efficiency.
