- Superannuation platform OneVue Holdings (OVH) has acquired a second Sargon group after several of the company’s assets went into receivership last month
- OneVue sold its Diversa Trustee business to the fintech platform back in December 2018, and Sargon was due to cough up $31 to complete the transaction by May 2020
- Yet the deal was halted in late January when multiple Sargon assets went into administration
- OneVue discovered that Sargon couldn’t hold up the deal and appointed its own receivers in a bid to recoup its losses
- Now, OneVue has added the Madison Financial Group to its portfolio, along with the ASX listed Sequoia Financial Group
- The company could be on the lookout to secure further Sargon assets as it aims to regain the lost capital under the advisement of PriceWaterhouseCoopers
- OneVue shares remain in the grey today, trading for 32 cents apiece since last Thursday
Superannuation platform OneVue Holdings (OVH) has acquired a second Sargon group after several of the company’s assets went into receivership last month.
OneVue sold its Diversa Trustee business to the fintech platform back in December 2018, and Sargon was due to cough up $31 to complete the transaction by May 2020.
Administrators appointed
Earlier this year, Sargon Capital appointed McGrathNicol as a receiver. OneVue has been told that Sargon is a holding company with no operating assets.
On Tuesday, the company announced it had asked PriceWaterhouseCoopers (PwC) receivers to perform an urgent assessment of its position after a non-operating entity of Sargon entered voluntary administration.
The following day, the receivers had taken control of one of Sargon’s secured asset. The asset is approximately 23 million shares in Sequoia Financial Group (ASX:SEQ), as it looks to recoup $31 million.
This holding is 19 per cent of the total SEQ outstanding shares and is worth approximately $14 million.
Sequoia Cheif Executive Garry Cole said he would like to see OneVue keep its interest but it was willing to buy back 10 per cent if the stock went to the market.
Second asset secured
Yesterday, the company took control of Madison Financial Group.
Madison was due to be rebranded to Sargon Adviser Services next month, but the rebranding will no longer go ahead.
The company and the receivers are working to sell the dealer group, allowing to “operate on a stable footing without the unnecessary distraction.”
OneVue Managing Director Connie Mckeage says that Maddison is an important client and has known the company for many years.
“We have known most of the Madison advisors for many years and we care about them and their businesses,” she told the market.
“The Group has been through quite an unsettling couple of years and our main aim is to enable the advisers to get on with the day to day servicing of their clients without interruption,” she added.
Next steps
The receivers are continuing to work on an urgent basis to realise the value for OneVue and will continue to keep the market updated.
The company could be on the lookout to secure further Sargon assets as it aims to regain the lost capital under the advisement of PriceWaterhouseCoopers.
OneVue remains steady on the market at midday trade, selling for 32¢ apiece at 12:24 pm AEST.