Tower spin-off to offload small shareholders
Tower spin-off Australian Wealth Management is seeking to offload its small shareholders, claiming the cost of maintaining them on its share registry is too onerous.
The group said in a letter to shareholders on Friday that because of its demerger from Tower, 83,000 of its 110,000 shareholders had "unmarketable parcels" of shares.
The group said the decision to sell off all shareholdings worth less than $500 had been forced on it by servicing costs.
"Ongoing registry and related costs of maintaining small shareholdings are the same as maintaining large shareholdings," the letter said.
AWM was formed in February this year following the demerger from Tower Ltd.
AWM plans to sell the shareholdings - valued at the closing price of $1.03 per share on April 12 - without clients incurring brokerage or other costs on or as soon as possible after June 13.
Shareholders who do not wish to participate must advise the group of their decision at any time up to May 27.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
