Crestone has entered a conditional scheme implementation deed (SID) with global wealth management firm LGT, with the latter agreeing to acquire 100 per cent of the shares on issues in Crestone for $475 million.
In a statement issued on Wednesday (15 December), Crestone said the proposed transaction would enable it to accelerate its growth strategy in Australia and expand the investment opportunities available to its high-net-worth clients.
The firm confirmed that its board and executive management team believe the offer to be attractive and have commissioned an independent expert’s report to provide a further assessment.
Commenting on the possible acquisition, Crestone chief executive Michael Chisholm said Crestone employees and clients would benefit from access to a broadened range of global services and investment opportunities, new international perspectives and the extension of the firm’s existing high client service standards.
“This is an exciting opportunity that would provide Australian high net worth investors with seamless access to global opportunities and would cement Crestone’s position as Australia’s leading high net worth investment advisor,” said Mr Chisholm.
“The proposed transaction would enable us to deliver greater scale benefits to our clients whilst drawing on the experience, skills, and global insights of a leading wealth management firm like LGT.”
Should the transaction be successful, Crestone would sit within LGT’s private banking entity, which offers a wide range of wealth and investment management products and services, including general advisory, portfolio management and wealth planning. It would, however, remain Australian domiciled.
The scheme consideration will comprise of two payments – an upfront payment of $250 million and a further payment in five years that may reach $225 million, with an escalation provision should Crestone exceed future year forecasts.
The scheme is subject to shareholder and regulatory approval, with Crestone noting the acquisition could be complete in the first quarter of 2022.
a clear sell out of a stockbroking business in decline paying their advisers commission on a grid structure in clear conflict of client interests. the exodus will start as soon as the brokers receive their retention cheques….