Tolhurst to buy ComCorp
Financial services organisation Tolhurst Group has announced its intention to acquire the privately owned national financial planning group Community & Corporate Financial Services (ComCorp).
The purchase price associated with the transaction is estimated to be $39 million depending on the participation of ComCorp’s Advisers and Credit Union clients as well as the entity’s financial results for 2008 and 2009.
Half of the consideration for the purchase will be satisfied by a payment made from cash and reserves with the other half being made up from an issue of Tolhurst Shares at an issue price of 50 cents per share.
A spokesperson for Tolhurst said ComCorp was selected as a good acquisition target because “their growth strategy and emphasis on financial planning and wealth management was very consistent with ours”.
The due diligence assessment of ComCorp currently underway must be completed before the transaction is finalised along with such tasks as formulating an agreed integrated business plan for 2008 and shareholder approval.
The acquisition will boost Tolhurst’s existing level of funds under advice of by an additional $1.7 billion.
The move is also set to expand Tolhurst’s client network to incorporate ComCorp’s established relationships with a variety of credit unions and superannuation funds including Hunter United Credit Union, Qantas Staff Credit Union, and Prime Super.
“The acquisition of ComCorp will be a transforming acquisition for Tolhurst not only enhancing earnings but increasing our distribution capability and changing the profile and certainty of our earnings. It will also increase our opportunity to develop our own financial products and enhance our strategy of making Tolhurst a leading independent investment bank,” Tolhurst executive chairman David Browne said.
Tolhurst is intending to make addition acquisitions in the near future to strengthen its presence on the Australian east coast and to further grow its wealth management services.
The transaction is forecast to be completed on July 31 of this year but Tolhurst will be assuming control of ComCorp on July 1, 2007.
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