AM sale put off till February
SUPERANNUATION and investments specialistAM Corporationhas delayed the announcement of a new owner, as it continues to sift through a shortlist of possible suitors.
AM’s founder and majority shareholder David Smith had previously hoped to make an announcement about the sale of the group before last Christmas.
But now the sale will not be finalised before February, when the process of reviewing a shortlist of buyers is expected to be completed.
“The hard work in getting down to a workable shortlist has now turned into the even harder task of finding the right ‘fit’. For us that means finding a new owner that has a similar culture, size and style as AM Corporation,” Smith says.
Smith announced last November he would sell his 96 per cent stake in AM Corp after a strategic review of the group by Gresham Partners identified it would benefit from a much-needed capital injection.
AM Corp has previously stated that independent financial planners will share in the proceeds of the sale.
While the portion of the sale proceeds to be allocated to individual financial planners is still unclear, it is understood the amount is likely to depend on the level of business individual planners write for AM over the next 12 months, as well as the period of time they have been associated with the group.
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