IWL buys into Etrade, denies takeover bid
Wealth management infrastructure solutions provider IWL, through one of its subsidiaries, has secured a strategic holding in Etrade Australia’s shares.
In a statement released to the Australian Stock Exchange, IWL said whilst below the substantial shareholding threshold, the company’s holding is significant and represents in excess of 5 per cent of IWL’s total asset base as at December 31, 2006. IWL did not release the name of its subsidiary involved.
“IWL does not presently intend to accept the recent $4.05 per Etrade share cash offer by ANZ and is currently finalising its strategic options for its holdings in Etrade shares.”
As part of this process, IWL is, amongst other things, considering the formulation of an alternative proposal to that put forward by ANZ, which it believes could be of greater benefit to Etrade Australia shareholders,” the statement said.
IWL intends to engage in consultation with clients, business partners and market shareholders of Etrade Australia, with a view to placing IWL in a position where it is able to finalise an alternative proposal.
However, IWL and Etrade said news of the announcement should not be mistaken for a takeover bid.
“Shareholders of both IWL and ETR should note that this announcement does not constitute a proposal by IWL for a takeover bid, scheme of arrangement, merger, amalgamation, consolidation, purchase of assets or other business combination in relation to Etrade Australia,” the statement said.
“IWL will only make a decision on any alternative proposal following the outcome of its discussions with key stakeholders, receipt of appropriate legal, taxation and financial advice, and in light of the material circumstances at the relevant time.”
IWL expects to be in a definitive position to announce whether or not it will release an alternative proposal before the expiry of ANZ’s current offer. Etrade Australia plans to release its company target statement on or around March 29.
Earlier this year, IWL confirmed it had received an indicative, non-binding and conditional proposal from IRESS to acquire VisiPlan. IRESS is the parent company to its wealth management software division, XPLAN.
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