IOOF to purchase SFG Australia
Financial services giant IOOF has entered into an agreement to purchase all of the shares of Shadforth Financial Group parent company SFG Australia for a price tag of $670 million.
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 18.5x3 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.
Adviser banned for disregarding director duties
A former Sydney financial adviser has been banned for five years by ASIC for dis...
Quality advisers migrating to ‘non-aligned’ firms
A new whitepaper has acknowledged the push towards quality financial advisers mi...
Advice firms must rise to ‘fairness challenge’: ASIC
The corporate regulator has called on financial advice firms to rise up to what ...