Terrain Australia makes acquisition debut
Listed financial services group, Terrain Securities Pty Ltd (TSPL), has signed a heads of agreement deal to merge with Mortimer and Chua (M&C), an Australian based stockbroking business.
TSPL, a wholly owned subsidiary of Terrain Australia (TER), signed the deal yesterday. TER entered the financial services market in March 2001.
Under the terms of the deal, the merged business will operate under the TSPL name and will have in excess of 60 advisers in offices in Melbourne, Sydney and Perth.
Also under consideration as part of the merger is the issue of 4.2 million TER shares, 2.5 million of which are to be issued on completion and 1.7 million on a deferred basis determined by future revenues.
TER managing director Mark Evans says the merger with M&C is another step in the group’s strategy to build a comprehensive financial services business.
M&C, founded by Chris Chua and David Mortimer in 1998, focuses on full service retail stockbroking, and has recently commenced an expansion program under the direction of Craig Smith-Gander who has joined the company from CIBC World Markets.
Evans says while rationalisation continues in the retail stockbroking sector, TER plans to be at the front of these changes and is ready to take advantage of any growth prospects that may arise. He says the merger with M&C is a great strategic fit with TSPL, and will provide significant economies of scale.
TER’s main focus is on stockbroking and finance broking. However, the group plans to expand into the financial planning, funds management and insurance broking markets.
The acquisition is subject to completion of due diligence which is expected to be finalised by February 19, 2002.
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