Australian wealth manager Netwealth confirmed it made a A$785m offer to acquire all the issued shares in platform giant Praemium.
But, according to an Australian Stock Exchange (ASX) statement on 2 November 2021, Praemium’s board quickly rebuffed the bid and said that the proposal “does not appropriately value” the platform’s “current performance and near-term trajectory”.
Netwealth said in a separate ASX statement that the deal will bolster its platform and “accelerate” its growth plans in the wealth management market.
If a deal is reached, the combined group would be the “largest independent wealth management platform in Australia”. The enlarged group would have around A$72bn funds under management and more than A$22bn in non-custodial assets.
Matt Heine, joint managing director of Netwealth, said: “Netwealth is confident that the proposed transaction would create a very strong value proposition for existing and future clients and for shareholders of both groups.
“Praemium shareholders would have meaningful equity in the combined group and benefit alongside Netwealth shareholders from the strategic benefits as well as the cost and revenue synergies that would arise from the merger.”
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Source: Praemium bats back A$785m bid for its Australian business | International Adviser
Source: https://australianfintech.com.au/praemium-bats-back-a785m-bid-for-its-australian-business/
