360 Capital wants to take Evans Dixon private

360 capital ASIC

4 November 2020
| By Mike |
image
image
expand image

Investment house 360 Capital has made clear that its intention in seeking to acquire wealth management group, Evans Dixon, is aimed at taking the business private.

In a letter to shareholders issued late yesterday, 360 has sought to explain why it has acquired 19.55% of Evans Dixon and why it has made a conditional offer to acquire the remaining shares with the intention of taking the business private.

It said it had been discussions with David Evans since August, last year, including privatising Evans Dixon but that Evans had been unwilling to engage with 360 with respect to the strategies.

“We believe that David and the ED1 team have built a broad and enviable platform which can be leveraged to take advantage of the significant opportunities in the financial services sector, particularly those relating to the stockbroking, corporate advisory, and wealth businesses,” the letter said.

The letter goes on to argue that Evans Dixon should be privatised because the move would give it greater flexibility to manage its capital base and, respond to opportunities and appropriately reward and incentivise staff while removing the complexities of its current public listing.

“Being listed on the Australian Securities Exchange (ASX) provides ED1 with limited benefits having regard to its historical trading history, relatively low liquidity, the complexity of its business, and the current challenges it faces including in connection with Australian Securities and Investments Commission (ASIC) proceedings,” it said.

The 360 letter said that, if its bid was successful, it would seek to ensure Evans Dixson staff and management remained highly aligned, including through ensuring staff enjoy a meaningful share of the profits that properly takes into account their contribution in the business.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 weeks 4 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 3 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

5 days 18 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

4 days 22 hours ago