AustChoice considering offers to sell
AustChoice Financial Servicesis examining its future direction after managing director Roger Gumley confirmed it had been approached by a number of groups offering to acquire the business.
The company has appointed accountants Pitcher Partners and lawyersBaker McKenzieto advise on the offers.
“There have been offers and we have appointed independent advisers to look at these,” Gumley says.
Gumley and AustChoice chairman Bill Bessemer, together with the independent advisers will sit on a committee to look at the offers and report back to the group’s board.
Gumley says a separate committee is needed, as all AustChoice directors would benefit from any take-over.
“The members of AustChoice expect a transparent review of any offers before a decision is made on what happens,” he says.
At present there are some restrictive articles on ownership of AustChoice, but it is understood these expire shortly, which would enable the company to list or be acquired.
AustChoice was looking at listing in either September or October this year, but Gumley admits recent events might overtake this happening.
The company currently has $1.3 billion of funds under management and expects to increase this to $1.5 billion by the end of the financial year.
There are more than 100 dealer groups and financial planners operating under the AustChoice structure.
The operation is profitable, reporting a pre-tax profit of $2.04 million in 2001 financial year. Gumley says profits for this financial year are expected to be about $4 million.
Meanwhile AustChoice is proceeding with a revised loyalty program to replace the existing equity scheme.
“A number of new revenue and value enhancing initiatives are planned. These have been discussed with shareholders and they will continue. They may even be accelerated following a listing or subsequent merger,” Gumley says.
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