Financial Index takes Centric Wealth
Dealer group Centric Wealth has found a buyer with Financial Index Wealth Accountants announcing it has entered into a Bid Implementation Agreement under which it has agreed to acquire all the outstanding ordinary shares in the dealer group by way of an off-market takeover bid.
The transaction also involves private equity firm KKR Asset Management which will hold a one-third share in the merged group.
The move was confirmed on the weekend by both Centric Wealth chief executive Phil Kearns and Financial Index founder and chief executive Spiro Paule. Under the terms of the offer, Centric Wealth shareholders will be entitled to receive 8.9 cents cash per ordinary share.
Importantly, the Centric Wealth board has given its backing to acceptance of the offer, issuing a statement that it was "fair and reasonable" and recommending to shareholders that it be accepted subject to there being no superior proposal.
Commenting on the transaction, Paule said it would serve to bring together two businesses with a strong focus on providing the highest quality financial advice for clients.
"The combination of the two businesses creates one of Australia's largest, non-aligned financial advisory organisations," he said.
Kearns said the businesses had similar core values and cultures.
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