In a statement released to the ASX on Thursday, Praemium said it had entered into a bid implementation agreement to make an off-market conditional takeover bid for all of the shares of Powerwrap that it did not already own.
The company said the shares would be acquired for $55.6 million, and would create a merged group with over $27 billion in funds under administration (FUA).
“The Powerwrap board of directors unanimously recommended that Powerwrap shareholders accept the offer and have indicated that they will accept the offer … in the absence of a superior proposal,” Praemium said.
“Powerwrap Shareholders will have the opportunity to participate in the benefits of a merged group which will be one of Australia’s largest independent specialist
platform providers on a combined FUA basis.”
Praemium chairman Barry Lewin said the deal represented an exciting opportunity.
“For many years, Praemium has been on a growth trajectory with a recent history of generating steadily growing profitability. This merger adds increased scale and significant synergies,” Mr Lewin said.
