Tolhurst moves to expand client network
Financial services organisation Tolhurst Group has acquired privately-owned national financial planning group ComCorp .
The two organisations have completed the formal Share Purchase Agreement, with Tolhurst agreeing to pay a cash sum of $15,635,000 (subject to movements in ComCorp’s net assets) and issue up to 31,270,000 Tolhurst shares as consideration for the acquisition.
The shares will be issued in three lots over three years and will be subject to escrow arrangements, future earnings performance and personal retention requirements.
An additional 7,500,000 options under the Tolhurst Group Limited Employee Option Plan will be issued to seven ComCorp executives.
The acquisition remains conditional upon Tolhurst shareholders’ approval of the transaction at their Annual General Meeting, scheduled for November 20. Subject to this approval, the transaction is expected to settle on November 21.
The acquisition boosts Tolhurst’s funds under advice by $1.7 billion. Company secretary David Fotheringham said the move is designed to expand Tolhurst’s client network to include ComCorp’s relationships with advisers, large, member-based organisations such as credit unions and industry superannuation funds in the major state capitals and regional areas of Australia’s east coast.
Following settlement, Tolhurst directors will extend an invitation to ComCorp executive vice chairman Allyn Chant to join its board of directors.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
