- Investment management company Praemium (PPS) has made an off-market takeover bid to purchase Powerwrap (PWL) for $55.6 million
- The deal values Powerwrap at 26.44 cents per share
- The Powerwrap Board has unanimously recommended that its shareholders accept the offer
- The merged group will be one of Australia’s largest independent specialist platform providers on combined funds under administration (FUA) basis
- On market close, Praemium is up 23 per cent and is trading for 45.5 cents per share while Powerwrap is up 65.7 per cent and is trading for 29 cents each
Investment management company Praemium (PPS) has made an off-market takeover bid to purchase Powerwrap (PWL) for $55.6 million.
Powerwrap is one of Australia’s leading wealth management platforms and offers investment, administration and share services to high net worth investors.
Under the offer, Powerwrap shareholders will receive 7.5 cents in cash per Powerwrap share and one premium share for every two Powerwrap shares. This offer values Powerwrap at 26.44 cents per share.
The Powerwrap Board has unanimously recommended that its shareholders accept the offer.
The merged group will be one of Australia’s largest independent specialist platform providers on combined funds under administration (FUA) basis.
Praemium Chairman Barry Lewin said the merger is an exciting opportunity.
“For many years, Praemium has been on a growth trajectory with a recent history of generating steadily growing profitability. This merger adds increased scale
and significant synergies,” Barry said.
“Powerwrap shareholders can now gain exposure to Praemium’s strong financial position and advanced technology, to realise compelling benefits via the creation of one of Australia’s leading independent specialist platform providers on a combined FUA basis,” he added.
Powerwrap Chairman Anthony Wamsteker said this offer is an excellent opportunity for its shareholders.
“With Powerwrap’s strong customer base and Praemium’s track record of profitability and cutting-edge technology, the benefits to Powerwrap shareholders are clear to the board and we encourage Powerwrap shareholders to take the next step in the company’s journey,” he said.
On market close, Praemium is up 23 per cent and is trading for 45.5 cents per share, while Powerwrap is up 65.7 per cent and is trading for 29 cents each.