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.