Aust Unity bids for Premium Wealth Management


Financial planning dealer group, Premium Wealth Management has confirmed that its shareholders are considering a bid from financial services group, Australian Unity.
The companies announced they had executed a non-binding indicative offer under which Australian Unity Personal Financial Services would acquire all the shares in Premium Wealth Management.
Money Management understands that the approach from Australian Unity has been under consideration by Premium Wealth Management for a number of weeks.
Money Management understands that Australian Unity has been looking to sustain growth in its wealth management business on the back of the positive contribution reported in the company’s half-year result, lodged with the Australian Securities Exchange in February.
Premium Wealth Management describes itself as being wholly-owned by its members.
Commenting on the potential acquisition, Australian Unity Personal Financial Services chief executive, Steve Davis said the addition of Premium would increase Australian Unity’s financial advice capability and its exposure in the accountants’ space.
Premium Wealth Management chairman and founder, Simon Wu, said his board was attracted to Australian Unity for many reasons, including their long term involvement in the accountants’ market and that they clearly see the value of Premium and recognise the quality of their practices.
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.