In a communication to the ASX yesterday, SFG’s directors listed the upsides of the proposed scheme, after registering an explanatory memorandum with ASIC.
“[SFGA’s] directors acknowledge the merits of consolidation in the financial services industry and recognise that a combination of IOOF and SFGA has the potential to create significant value for SFGA shareholders and also to provide benefits for clients of the combined group, such as access to additional products and services,” said SFGA chairman Peter Promnitz.
The proposed scheme will result in “best of breed advice” being provided by staff of the new consolidated entity, Mr Promnitz added, as well as “scale and competitive advantage”.
Mr Promnitz said the directors “unanimously recommend that [shareholders] vote in favour of the scheme”, a sentiment that was seconded by IOOF chairman Roger Sexton in a separate statement.
“On behalf of the IOOF board, I encourage you to vote in favour of the scheme and look forward to welcoming you as an IOOF shareholder,” Dr Sexton said.
