The group also announced a shareholder rights issue as it looked to raise funds for future acquisitions.
Mr Heap’s appointment will take effect later this year once his contractual obligations with UBS are completed, for a remuneration package of $475,000, including a short-term incentive of up to 50 per cent plus yet-to-be-finalised long term incentives, AWI stated.
The long-term incentive plan will facilitate share ownership and links a significant portion of his total potential remuneration to AWI’s share price performance.
The appointment aligns the structure of AWI with the strategy set out in the shareholder briefings released to the Australian Securities Exchange in April and August this year, according to AWI, and also clearly positions the group for future investment in financial services and the ongoing development of its investor direct strategy.
AWI acquired 49.6 per cent of the ordinary shares in van Eyk research in April this year for $13.3 million, under its prior name of Merricks Capital Special Opportunities Fund, with the name changed in June. In August, it acquired online financial services information portal InvestSMART from Fairfax Media for $7.0 million.
In March, there was a management change, with London-based former head of Australian Wealth Investments Andrew Barnes acquiring around 20 per cent of the firm.
Welcoming Mr Heap’s appointment, AWI chairman Andrew Brown said: “He will bring strong business and industry skills to the company which will be beneficial in assisting the growth of our van Eyk investment, and his experience in running digital businesses (at Tabcorp) combined with his entrepreneurial skills, will be highly beneficial in leveraging the InvestSMART platform.”
AWI also yesterday announced a non-renounceable rights issue, inviting shareholders to subscribe for two new shares for every existing share, at an issue price of 35 cents per share. AWI said this represents a 27 per cent discount to the closing price as of September 19.
The group said it expected to raise up to $13.3 million before costs, and the majority of directors would fully subscribe their entitlements. The extra capital is to be used to fund potential future acquisitions, and to fund the acquisition of the management agreement from Aurora Funds Management and Mr Barnes for $900,000.
