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- Investment manager Praemium (PPS) has announced that its off-market takeover offer of Powerwrap (PWL) is now wholly unconditional
- The company first bid to buy Powerwrap in July 2020 and will close its offer on September 21, 2020
- Praemium has encouraged all shareholders in Powerwrap to accept the offer without delay, before it closes
- Praemium closed 5.15 per cent in the green for 51 cents per share
- Powerwrap closed 4.92 per cent up for 32 cent per share
Investment manager, Praemium (PPS) has announced that its off-market takeover offer of Powerwrap (PWL) is now wholly unconditional.
Powerwrap is a fellow ASX-listed investment management company, as well as a wealth management platform. Praemium first made a bid to buy the company for a purchase price of $55.6 million in July 2020.
This offer valued Powerwrap at approximately 26.44 cents per share, with shareholders to receive 7.5 cents per share in cash. The shareholders are also set to receive one Praemium share for every two of their shares in Powerwrap.
The offer was welcomed by the Powerwrap’s Board of Directors, who unanimously encouraged the company’s shareholders to accept the offer.
News of the initial off-market bid saw the share prices of both companies rise substantially, with Praemium increasing 23 per cent and Powerwrap rising 65.7 per cent.
With the offer now free of all remaining defeating conditions, Praemium has been able to declare the takeover offer as unconditional.
The company’s offer will officially close at 7:00pm AEST on September 21, 2020. Praemium has encouraged all shareholders in Powerwrap to accept the company’s offer without delay, before it closes.
After the takeover is complete, the merged entities will become one of Australia’s largest independent specialist platform providers on combined funds under administration basis.
News of the takeover bid being declared unconditional has seen the share prices of both companies rise once again.
Praemium closed 5.15 per cent in the green for 51 cents per share.
Powerwrap closed 4.92 per cent up for 32 cent per share.
