- Chant West Holdings (CWL) has announced it will sell its superannuation research and consultancy business, Chant West, to Zenith Investment for $12 million
- Under the terms of the agreement, the deal is expected to be completed by next month
- CEO Brendan Burwood said the company has been receiving a number of enquires for Chant West for quite some time now
- On market close, Chant West is up 44.4 per cent on the market, selling shares for 10.3¢ apiece
Chant West Holdings (CWL) will sell its superannuation research and consultancy business, Chant West, to Zenith Investment Partners for $12 million.
This purchase will be an asset sale, however, it will need shareholder approval. A notice of the meeting will be distributed later this month to shareholders.
Under the terms of the agreement, the purchase is expected to be completed by the end of March 2020.
Zenith is a market-leading provider of unbiased funds management research and investment consultancy services to licensed financial advisers, for the benefit of their retail clients.
CEO Brendan Burwood said the company has been receiving a number of enquires for Chant West for quite some time now.
“Chant West has been a strong performer for CWL since we acquired the business in December 2015, achieving 11 per cent growth in customer revenue last financial year,” he told the market.
After a successful sale of Chant West, CWL will keep Enzumo, it’s financial planning technology solutions business, and it anticipates to have a cash surplus of approximately 10 cents per ordinary share. The company said it intends to return the surplus cash to shareholders as soon as practicable.
“We believe this proposal represents the best option for all stakeholders,” Brendan said.
“The marriage of distribution capability and superannuation expertise should enable Chant West to invest in additional growth of its independent research and data capability, and the completion of this transaction will enable CWL to return funds to its shareholders,” he added.
On market close, Chant West is up 44.4 per cent on the market, selling shares for 10.3¢ apiece.