Explorer charts a new beginning
John Aldersley
Explorer Group is in the process of re-branding in order to distance itself from any negativity created by its association with the struggling First Capital Group, which had previously intended to purchase the separately managed accounts (SMA) specialist.
John Aldersley, managing director of Explorer Group, the parent company of Direct Portfolio Services, said he expected the name change to be official within about three weeks, but was unprepared to disclose the new name at this stage.
According to Aldersley, the decision came shortly after Ascalon Capital Managers, a joint venture between St George Bank and Kaplan Equity, announced plans to acquire a 40 per cent stake in the company, with the re-branding signifying a new start.
“Part of the reason for the name change is to put the First Capital issue behind us. It’s a symbolic recognition that we’ve moved on from last year’s troubles. The second reason is that the name ‘Explorer’ doesn’t accurately reflect what we do. I mean, most people think we’re a mining company,” Aldersley said.
First Capital’s initial bid to buy a 100 per cent shareholding in Explorer began in June 2006. The deal languished for almost a year before Aldersley, the controlling shareholder, decided to pull the plug, filing a letter of termination of the share sales agreement in June 2007.
“It wasn’t long before it was obvious they didn’t have the money and that the deal would fail,” Aldersley said.
However, because First Capital never actually agreed to terminate the purchase option, “they still believe they have a hold over us and reserve the right to take legal action. But the likelihood of that happening four months on is less and less. As far as I’m concerned, Explorer’s association with them is over.”
According to Aldersley, shortly after terminating the agreement with First Capital, Explorer received calls from many interested investors who were holding back until the issue was settled.
“But now that we have a highly credible shareholder on board with Ascalon, we’ve established stability moving forward,” he said.
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