Diverger/Centrepoint Alliance deal collapses
Diverger has withdrawn its bid for Centrepoint Alliance after discussions failed to progress.
The Diverger bid, made in June, was for a combination of cash and Diverger shares valued at $0.325 per Centrepoint Alliance share by way of a scheme of arrangement. However, in response, Centrepoint said it failed to reflect the firm’s strategic value.
Earlier on Monday, Centrepoint Alliance released a statement that said “conversations had not progressed” between the two firms.
“Discussions with Diverger have not progressed to a point where Centrepoint Alliance has any further update to shareholders. Centrepoint Alliance reiterates its view that the Diverger non-binding indicative offer does not adequately reflect the firm’s value.”
Later in the day, Diverger released its own statement that it was unable to progress with Centrepoint Alliance as it was unable to reach agreement and had not been granted access to due diligence. It also understood that assumptions raised in the indicative proposal may be unlikely to be reached.
“Without meaningful engagement by the Centrepoint Alliance board, Diverger is not able to progress the indicative proposal.
“Diverger continues to believe there are compelling benefits to both Diverger and Centrepoint Alliance shareholders and adviser stakeholders in combining the two entities to create a market-leading advisor business with greater scale, expanded service offering and enhanced market liquidity.”
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial chief executive, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.