Mariner: restructuring and record results
Mariner Financial today announced an off-market takeover of Mariner Retirement Solutions (MRS), the latest step in its initiative to acquire assets and distribute interests to investors.
Mariner has proposed to offer one Mariner Financial share for every seven MRS shares, an effective purchase price of approximately 19 cents per share, based on Mariner Financial’s closing price on August 28, 2006.
The announcement was made concurrently with Mariner Financial’s posting of record pre-tax and after-tax profits of $15.9 million and $10.2 million respectively, and its move to restructure the Mariner Group of Companies.
Under the restructuring initiatives of its 47 per cent owned listed associate Mariner Wealth Management (MWM), Mariner Financial plans to issue a further $125 million of new equity capital through a placement and public offering. Its investment of around $20 million, approximately 15 per cent of MWM, will make Mariner Financial the largest shareholder.
MWM will also be renamed Mariner Bridge Investments Limited, a move management believes will “reflect better the activities of the company and create a distinct corporate identity”.
Commenting on the strong results for the year, Mariner Financial executive chairman Bill Ireland said the company had made “significant progress towards [its] goal of becoming a leading provider of innovative investment products”.
“We continued to invest in the core origination and retail distribution capabilities that are the real strengths of the Mariner business model,” he said.
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