Findex acquisition of Crowe Horwath hits headwinds
A bid by financial services group, Findex, to acquire financial planning and accounting firm, Crowe Horwath Australasia Ltd has run into headwinds with significant shareholder, Barry Lambert, indicating his reluctance to back the deal at its current valuation.
As well, Lambert has signalled that the directors of Countplus, of which he is chairman, will be reserving their position on the Findex bid.
Commenting on the Australian Securities Exchange (ASX) announcement that Findex had entered into a Scheme Implementation Agreement to acquire Crowe Horwath, Lambert expressed surprise at the low value of the bid.
"Whilst Crowe Horwath has performed poorly, I am surprised that Directors are supporting a bid of just 50 cents at this time," Lambert said.
He said his superannuation fund would not be voting its shares in favour of the sale at 50 cents.
Further, he indicated that directors of Countplus would not be making a decision on Countplus' holding in Crowe Horwath until a later date.
Findex and Crowe Horwath announced to the ASX on Monday that they had entered into the Scheme of Implementation Agreement under which Findex would offer Crowe Horwath shareholders 50 cents per share.
The Crowe Horwath board signalled it would be recommending acceptance of the offer by shareholders with chairman, Rich Grellman stating that the "Board has unanimously concluded that proposal from Findex is a compelling value proposition offering Crow Horwath shareholders a significant premium to the market price and fair value".
Findex chief executive, Paul Spiro said the company had a long-term strategy of growth through acquisition and believed the Crowe Horwath businesses in Australia and New Zealand were a natural fit to the Findex stable because of the synergies between accounting practices, financial advice and financial services.
"We plan to maintain the Crowe Horwath brand, and to grow the business which we believe will prosper under our systems, culture and guidance," he said.
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