Wilson HTM considers offers for Pinnacle Investment Management
Despite a difficult quarter for the company, Wilson HTM Investment is currently investigating a number of "indicative" offers from interested parties to purchase parts of its Pinnacle Investment Management business.
Although Wilson HTM confirmed the "substantial value" in Pinnacle and its boutique fund managers, it stated that it would retain its 79.3 per cent interest in the business.
"The conclusion of the formal process is due to the deterioration in market conditions since March 2012 and an assessment that a transaction could not be concluded at this time on sufficiently attractive terms for Wilson HTM shareholders," the group stated.
"Wilson HTM remains willing to engage with strategic investors and as a result, an on-going informal process will continue."
The market deterioration is expected to result in a second-half loss after tax of $3.7 million to $4.7 million, with a likely full-year after-tax loss of between $7 million to $8 million, the company said.
The group most recently reported a net loss after tax of $3.3 million for the six months to 31 December 2011.
The cost-cutting program is expected to continue across all business activities to manage the challenges of the current environment, including a "consideration of the cost and benefits of the Group remaining listed", Wilson HTM added.
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