DKN directors recommend IOOF deal

IOOF’s acquisition of DKN appears set to proceed, with DKN Financial Group announcing it has entered into a Scheme of Implementation Agreement, which increases the value of the offer to shareholders.

The company announced to the Australian Securities Exchange today that it had entered into the scheme with IOOF Holdings Limited and a wholly owned IOOF subsidiary Austselect to implement a revised version of the initial proposal.

The new scheme sees IOOF acquiring 100 per cent of the shares it does not already own in DKN, for 80 cents cash per DKN share.

The announcement said IOOF’s new proposal of 80 cents represents a 56.9 per cent premium to the closing share price of DKN on 10 June.

DKN chairman Rob Hunwick said scheme represented an opportunity for DKN shareholders to realise value inherent in DKN and the independent directors would be recommending the new proposal.

The DKN announcement said that subject to an independent expert concluding the scheme was fair and reasonable and in the best interests of shareholders, and there being no superior proposal, the independent directors unanimously recommended that shareholders, excluding IOOF, vote in favour of the scheme.

Commenting on the development, DKN chief executive, Phil Butterworth (pictured) said IOOF’s proven approach to managing multiple brands provides comfort that Lonsdale Financial Group will continue to provide quality services and support, as it has done historically. “DKN’s Equity Partners should also benefit from IOOF’s scale and commitment to growth,” he said.