YBR board shuns takeover bid


The board of mortgage and wealth company, Yellow Brick Road Wealth Management (YBR) appears set to recommend rejection of an unsolicited off-market takeover bid by a wholly-owned subsidiary of Sir Ron Brierley’s Mercantile Investment Company.
YBR announced to the Australian Securities Exchange (ASX) late yesterday that it had received the bidder’s statement relating to the offer to acquire all the ordinary shares in YBR at a price of $0.09 in cash.
The ASX announcement said the takeover bid was unsolicited and in the view of the Board “it materially undervalues the existing and future value of the company and is opportunistic in its nature, timing and pricing”.
It said that a fully considered recommendation by the Board, along with the company’s target statement, would be provided to shareholders in due course.
“In the meantime, the YBR Directors advise YBR shareholders not to take any action whatsoever regarding their YBR shares in response to the takeover bid,” the ASX statement said.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.