Selfwealth has confirmed it has commenced the process for a scheme of arrangement with Bell Financial Group (BFG) but remains open to forming a binding proposal with rival bidder Svava.
It was announced in November that Selfwealth had received a bid of $0.25 cash per share from BFG and entered a scheme implementation deed later that month.
However, it subsequently received a higher bid from Svava for $0.28 cash per share in February. Svava operates wealth management platforms through its Syfe brand in Australia, Singapore and Hong Kong.
Although it was already in the scheme implementation deed with BFG, it said it would consider Svava as its bid was considered a superior proposal.
Selfwealth also received a third bid from AxiCorp Financial Services, but this was rejected as it was for $0.23 cash per share.
As of 20 February, Selfwealth has now commenced the statutory process in the Federal Court of Australia for a proposed scheme of arrangement with BFG. This will require Selfwealth to convene and hold a meeting of shareholders on 28 March to consider and vote on the scheme and approve the distribution of an explanatory statement.
But it said it is still “actively engaging” with Svava which remains non-binding and indicative, and that there is no guarantee it will result in a binding proposal.
Should it result in a binding proposal, it said, Selfwealth is required by the scheme implementation deed with Bell to go through a matching rights process before it can accept the Svava proposal.
“That may lead to Bell revising its proposal, but there is no certainty of that occurring,” Selfwealth said.
