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SFG Australia proposes friendly scrip-based merger with WHK Group

Australia-based financial advisory firm WHK Group and SFG Australia are planning to integrate their operations, and set up a new entity to expand their businesses using combined resources.

A non-binding indicative proposal was provided by SFG to WHK board in relation with the merger, which has completed preliminary mutual due diligence, to date.

SFGA has proposed a merger ratio, which would result in WHK shareholders owning 42% of the merged group that equals to 0.503 WHK shares for each SFG share.

The ratio compares to approximately 39% and 40% respectively if either the current spot prices or 3-month VWAP’s were used.

WHK’s board is now assessing the offer, and it is possible that the deal could not be concluded.

The proposed merger has also been welcomed by a major shareholder Perpetual Smaller Companies, which owns nearly 5.3% stake in WHK Group.

Listed on the Australian Securities Exchange, SFG Australia had $11.3bn in funds under advice, $9.8bn in funds under administration and $4.6bn in funds under management, as at 30 September 2012.