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.
And compliance costs are exponential and based on the weakest link…can’t see any benefit to the advisr in this.
Maybe Diverger can fix the mess Centrepoint made of Enzumo. They lost all the staff we used to deal with there. Just proved Licensees have a bad track record at service and all they know how to do is cut costs and run PD Days.
And the vertical integration just gets stronger again. Banks out just to be replaced by something else
As a long term adviser of Centrepoint , it is hard to see what is in this for the advisers who have enjoyed dealing with past staff, the last merger with Clearview saw us lose some great staff like David Spiteri and little extra services for is , in the such as ethe curor dont we count.