Diverger has made an offer to acquire Centrepoint Alliance, a move that would create one of the largest licensees behind only Insignia and AMP.
In an ASX listing on Thursday, Diverger confirmed it has submitted an offer to acquire all shares in Centrepoint Alliance for a combination of cash and Diverger shares valued at $0.325 per share offer price.
“Diverger believes the indicative proposal provides compelling benefits to Centrepoint Alliance’s shareholders and licensee stakeholder,” the company said.
According to the ASX-listed company, the combined group will benefit from a “significantly strengthened market leading position” with greater operational scale with services being provided to an adviser footprint of more than 1,400 advisers post completion.
Moreover, the merger is expected to enable “an expansion of core client services” utilising the skill and expertise of both Diverger’s and Centrepoint Alliance’s existing operations team and combined product offerings.
It is also seen to facilitate a shared ability to leverage the technology capability and learnings from Diverger’s technology partnerships.
The bid, worth a combined $63.6 million, is contingent on a “short” period of due diligence, approval from all relevant regulators and the Diverger board.
“Diverger looks forward to working collaboratively with the Centrepoint Alliance to undertake due diligence and execute binding transaction documents in an efficient manner to provide Centrepoint Alliance shareholders with a high degree of certainty, limited conditionality and minimal execution risk,” the company said.
Diverger is entering the takeover bid with a 19.99 per cent share in Centrepoint Alliance it obtained via a call option with major shareholder Thorney Group.
The company confirmed it has engaged MA Moelis Australia Advisory as financial adviser and MinterEllison as legal adviser in relation to the indicative proposal.
The financial services minister announced the news on Wednesday (10 August).
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