COG Financial Services has acquired 19.99 per cent of Centrepoint Alliance from ClearView for $13 million.
In a statement to the ASX, ClearView Wealth said it has sold nearly 20 per cent of its interest in Centrepoint to COG as it pivots its focus to life insurance.
ClearView acquired a 24.5 per cent holding in Centrepoint on 1 November 2021 as consideration for the sale of ClearView’s financial advice businesses to Centrepoint.
“Given ClearView’s sole focus on life insurance, ClearView has determined to sell its strategic investment in Centrepoint,” the firm said.
Earlier this year, ClearView disclosed its intent to divest from its wealth management business, and in August reiterated that the process of exiting its wealth sector was in progress.
At the time, ClearView said the move was prompted by the identified “lack of scale and growth opportunities” within the wealth business.
In a separate ASX listing, COG said it has utilised cash and debt to fund the acquisition of this interest.
“COG’s core strategy has two limbs: to own interests in businesses that are involved in the distribution of financial services (asset finance broking, novated leasing and insurance broking being examples of these) and building a scale business in retail funds management,” Patrick Tuttle, COG chair, said in the statement.
“The strategic rationale for the acquisition of the CAF [Centrepoint] interest is that it builds on the first limb of COG’s strategy.”
Earlier this week, COG announced it had withdrawn its non-binding indicative offer for a scheme of arrangement to merge with Diverger.
The firm first emerged as a second bidder for Diverger late last month, after Count had already entered into a binding scheme implementation deed with Diverger.
“COG continues to believe the offer was a superior proposal that was more beneficial to DVR shareholders and in the best interests of COG shareholders, but it has formed the view that DVR’s major shareholders who could control the vote on the offer, in the absence of any public statements to the contrary, are unlikely to vote in favour of COG’s offer,” Mr Tuttle said on Wednesday (15 November).
Also on Friday (17 November), Diverger confirmed it has entered into an “amending deal” with Count under which the latter has upped its offer for the firm. Diverger shareholders will now receive an implied consideration of $1.3651 per Diverger share.
Diverger added that its board “continues to unanimously consider that the scheme is in the best interests of Diverger shareholders”.
