Selfwealth/Bell deal in doubt as third bidder emerges
Selfwealth has received a third non-binding indicative proposal from a new bidder valuing the company at $65 million.
In an ASX announcement on 3 February, the firm announced it has received a non-binding indicative proposal from Svava to acquire 100 per cent of the shares in Selfwealth for $0.28 cash per share by way of a scheme of arrangement.
Svava operates wealth management platforms through its Syfe brand in Australia, Singapore and Hong Kong.
The bidder also notified Selfwealth that it has acquired beneficial ownership of approximately 43.4 million Selfwealth shares, which represents 18.8 per cent of shares on issue.
The Svava proposal values Selfwealth at $65 million on a 100 per cent equity basis, it confirmed, a 133 per cent premium to the last close share price of Selfwealth of $0.120 as at 12 November 2024.
This marks the third company publicly entering acquisition talks for Selfwealth, following bids from Bell Financial Group and AxiCorp Financial Services last year.
On 13 November, it was announced that Selfwealth had received a takeover bid from Bell Financial Group for 100 per cent of the company at $0.22 cents per share. This valued the company at $51 million on a 100 per cent equity basis, an 83 per cent premium to the last close share price of Selfwealth of $0.120.
However, the following day, global online brokerage firm AxiCorp Financial Services made its own offer for $0.23 cents per share.
Selfwealth then confirmed on 25 November that it had entered into a scheme implementation deed (SID) with Bell after it made a higher bid of $0.25 cents per share which valued the company at $58 million.
“After careful consideration of the revised Bell proposal, in particular its value and conditionality, Selfwealth considers it is in shareholders’ best interests and accordingly Selfwealth has entered into a scheme implementation deed with Bell,” the company stated at the time.
In light of the higher bid from Svava, Selfwealth said this could reasonably be considered to become a superior proposal.
“The Selfwealth board, having reviewed the Svava proposal with the assistance of its financial and legal advisers, has determined in accordance with the terms of the Bell SID that the Svava proposal, while indicative and non-binding, could reasonably be considered to become a superior proposal (as defined in the Bell SID).”
As a result, Selfwealth is permitted under the Bell SID to engage further with Svava in order to establish whether the proposal is capable of being completed in a reasonable time frame and if it is more favourable to Selfwealth shareholders than the Bell offer.
The proposal from Svava is non-binding and subject to a range of conditions, such as completion of due diligence by Svava, termination of the Bell SID and entry into exclusivity arrangements with Svava, as well as a binding implementation deed with Svava.
The firm added: “The Selfwealth board continues to unanimously recommend that Selfwealth shareholders vote in favour of the Bell offer, in the absence of a superior proposal (as defined in the Bell SID) and subject to an independent expert concluding (and continuing to conclude) that the Bell offer is in the best interests of Selfwealth shareholders.”
Selfwealth is currently engaging with Svava and has requested further information regarding certain matters, including Svava’s funding capacity and potential requirement for regulatory approvals.
AUTHOR
Jasmine Siljic
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