What now for Madison?
A question-mark is now hanging over the future of the former Madison Financial Group which is now known as Sargon Adviser Services with the confirmation that voluntary administrators were appointed to a number of subsidiaries of Sargon Capital Pty Ltd.
Publicly-listed OneVue announced to the Australian Securities Exchange (ASX) that it had been advised of the voluntary administration and said that the subsidiaries of Sargon included the entity over which OneVue holds a secured interest.
The OneVue announcement said that the company understood that the Sargon trustee and regulated businesses were not in voluntary administration or receivership and continued to trade as normal.
Sargon acquired the superannuation trustee services company Diversa Trustees Limited and CCSL Limited from OneVue in late December, 2018, in a transaction valued at around $45 million.
Madison financial group, which is a wholly-owned subsidiary of Sargon, was rebranded to Sargon Adviser Services in early December after being acquired by Sargon earlier in 2018.
Acknowledging the Sargon issue on Monday, OneVue issued a statement to the ASX in which it sought to emphasise that its “commitments to clients and growth is in no way dependent on the outcome of the Sargon receivables”.
OneVue managing director, Connie Mckeage said in the statement that the business was appropriately funded and had the balance sheet strength, cash generating capabilities, cash on hand and debt facilities to support the growth and operating requirements of the business
“All outstanding amounts for acquisitions were fully extinguished in January 2020 include the final payment to KPMG for the acquisition of the superannuation administration business,” she said.
The rebrand of Madison to Sargon Adviser Services was due to be completed next month.
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