Under the terms of the proposed transaction, SFGA shareholders will be offered 0.104 of an IOOF share for each SFGA share they hold.
IOOF is also making available a cash alternative, subject to a maximum cash component of $100 million in aggregate.
The cash equivalent will be calculated based on the volume weighted average price (VWAP) of IOOF shares over the 10 trading days immediately before the scheme meeting.
The offer represents an implied valuation multiple of 18.5×3 SFGA’s underlying net profit after tax for the 12 months ended December 2013, according to an IOOF statement.
The deal would make IOOF the third-largest advice business in the country.
[quote name=”Patrick McMenamin”]And if the current enquiry bans or restricts vertical intergration?[/quote]
They won’t because the banks won’t let it happen. Ironic that the Money Management Independent Dealer Group of 2013 won’t qualify anymore.
There is only reason IOOF would make this purchase – to push more product.
And if the current enquiry bans or restricts vertical intergration?