Guinness Peat Group has made an unconditional all-cash takeover bid for MMC Contrarian at 48 cents a share.
Investment holding company Guinness Peat Group (GPG), chaired by Ron Brierley, has made an unconditional all-cash takeover bid for diversified financial services company MMC Contrarian.
GPG, through its subsidiary Ecurb Australia, is looking to purchase roughly 70 per cent of MMC shares it doesn't already own at 48 cents each, valuing the company at $68 million.
MMC's shares had jumped 18.29 per cent to 48.5 cents by the close of trading yesterday.
GPG said should it own at least 90 per cent of MMC's shares, it will conduct a strategic review of MMC and will be entitled to acquire any outstanding shares and therefore acquire the whole company.
"GPG intends to conduct a strategic review of MMC's assets and operations to evaluate their performance, profitability and prospects in light of the more detailed information then available to it and will then implement any steps which it considers necessary to maximise the value of MMC," GPG said.
GPG said it will also review all senior employment positions in MMC to determine whether MMC is properly staffed to take it forward following the review.
GPG intends to continue with the business's existing strategy of examining further acquisition opportunities in the wealth management industry.
"These potential opportunities may range from small acquisitions and partnership initiatives to larger scale acquisitions or mergers with other financial services companies or partners," GPG said.
"It is uncertain whether any acquisitions or mergers will eventuate from the strategy."
MMC subsidiary ComCorp Financial Advice on 13 July acquired a 40 per cent stake of Berry Financial Services, a financial planning practice founded and owned by FPA chair Julie Berry.
In the same month, MMC sold its funds management unit and on 14 August reported a net loss of $4.7 million for the year ended 30 June.
MMC was unavailable for comment.
GPG is listed on the London, Australian and New Zealand stock exchanges and has stakes in businesses including Tower Ltd in New Zealand and property developer Canberra Investment Corporation.
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