CHAMP takes controlling stake in Centric
CHAMP Private Equity has taken a controlling share in Centric Wealth , announcing an $80 million placement with the dealer group.
Centric will use the money from the placement to cut its debt and simplify its capital structure, including replacing securities bearing interest and dividend coupons with new equity.
The chief executive of Centric, Mike Pillemer, said: “The investment by the CHAMP funds will enhance Centric Wealth’s commitment to providing the highest level of service to our clients while pursuing new opportunities that fit with our business model and culture.”
The managing director of CHAMP, David Jones, said that the company was committed to recommending to the CHAMP funds to invest in market leading companies such as Centric Wealth, despite the financial instability.
A $100 million rights issue between Centric and CHAMP to raise capital for the dealer group collapsed last year due to global financial uncertainty.
The placement is subject to shareholder approval.
Recommended for you
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
Digital advice provider Otivo has launched an interactive tool, powered by artificial intelligence and Otivo’s own advice engine, to help answer client questions.