Countplus looks to new listed entity
Countplus has signaled its intention to list a new entity on the Australian Securities Exchange (ASX) at the same time as adjusting its ownership model to facilitate such a move.
The group announced the move to the ASX today at the same time as rolling out a new ownership model “C+2” - which it said that, if successful, could result in a new listed vehicle.
It said the aim was to step up the part-acquisition of firms such as South Australian company Hood Sweeney, with such firms being expected to have a net profit before tax of at least $2 million by the time of possible listing.
The announcement said that a feature of the new model would be that principals of the firms would retain direct ownership of between 40 per cent and 49 per cent of their business after listing; retain management control, subject to shareholder agreement; as well as an initial holding in the proposed listed vehicle which would not be subject to escrow.”
The company said that apart from the obvious benefits to the new vendor principals who would be able to release some cash in the first tranche of the sale, it was expected Countplus would also be a major beneficiary of the strategy.
It said the first acquisition tranche of around 30 per cent was expected to be acquired by Countplus and on-sold to the new entity, should a listing eventuate.
Countplus chairman Barry Lambert has described the strategy as “a natural evolution of accounting ownership and succession planning”.
“This opportunity, if successful, could provide a much bigger benefit to Countplus than the benefit to Count Financial when it listed Countplus,” he said.
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