- ClearView Wealth (CVW) has agreed to sell its financial advice business to Centrepoint Alliance (CAF) for $15.2 million
- CAF will issue 48 million shares, at an issue price of 25 cents each, and a cash consideration of $3.2 million
- The issue of shares will see ClearView with a 25 per cent equity stake in Centrepoint Alliance
- On market close for the day, ClearView is up 1.01 per cent and is trading at 50 cents per share
- CAF’s shares ended the day 1.92 per cent to trade 26.5 cents
ClearView Wealth(CVW) has agreed to sell its financial advice business to ASX-lister, Centrepoint Alliance (CAF) for $15.2 million.
Centrepoint is a leading provider of advice and business services to financial advice firms throughout Australia.
CAF will issue 48 million shares at an issue price of 25 cents each, and a cash consideration of $3.2 million.
The issue of shares will see ClearView with a 25 per cent equity stake in Centrepoint Alliance.
Under the deal, ClearView has the right to appoint one director to the Centrepoint Alliance Board upon completion. The deal is expected to be completed by October 31.
However, the deal is subject to a number of terms such as CAF shareholder approval, regulatory approvals and other customary conditions.
Notably, the financial advice businesses are expected to declare around $7 million pre completion dividend to ClearView prior to their sale to Centrepoint.
“The deal with Centrepoint Alliance provides the combined entity with immediate scale, a strong and effective management team, best of breed technology and processes and the capability to take a market leading position in the financial advice industry to build a strategically successful and profitable financial advice business,” the company said.
On market close for the day, ClearView was up 1.01 per cent and was trading at 50 cents per share. CAF’s shares ended the day 1.92 per cent to trade 26.5 cents.