Selfwealth switch-up as platform commits to rival bidder
Trading platform Selfwealth has announced it will progress plans with Svava after Bell Financial declined to make a counterproposal against the higher bid.
Last week, it was announced that Selfwealth had commenced into a scheme of arrangement with Bell Financial Group. However, the firm said it was still “actively engaging” with Svava as the firm had made a superior proposal.
On 24 February, it was then announced Svava had offered a binding proposal to acquire 100 per cent of the shares in Selfwealth for $0.28 cash per share by way of a scheme of arrangement. The announcement said that Bell had until 5pm on 26 February to make a counterproposal.
In an ASX announcement on 26 February, Bell Financial said it had advised Selfwealth that it would not be making a counterproposal to the binding Svava proposal earlier this week.
Bell said: “Our proposal to acquire Selfwealth by way of a scheme of arrangement at $0.25 cents per share followed a comprehensive due diligence process in which Bell identified strategic merit at our assessed valuation of Selfwealth.
“The decision not to make a counterproposal was made with consideration to our assessed valuation of Selfwealth, the risks associated with an anticipated lower interest rate cycle, current market conditions and the competitive landscape.”
As a result of Bell’s decision not to up its bid, Selfwealth has now said its intention to execute a scheme implementation deed with Svava instead.
“Accordingly, under the Bell scheme implementation deed, Selfwealth is now permitted to further progress the Svava proposal. Selfwealth intends to enter into a scheme implementation deed with Svava to implement the Svava proposal as soon as practicable,” it said.
Selfwealth said that it will continue to provide relevant updates to shareholders in respect of the Svava deal.
Svava first made a non-binding indicative proposal at the beginning of this month. The firm operates wealth management platforms through its Syfe brand in Australia, Singapore, and Hong Kong.
Previously on 25 November, Selfwealth said it had entered into a scheme implementation deed with Bell, following its $0.25 per share proposal. Bell initially announced a $0.22 per share proposal, but this was later raised in light of the Svava deal.
Selfwealth also received a third bid from AxiCorp Financial Services in the past, but this was rejected as it was for $0.23 cash per share.
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Jasmine Siljic
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