Australian Unity’s financial planning arm has made an acquisition bid for Premium Wealth Management, seeking greater leverage in the accounting market.
In a statement issued on Friday, Australian Unity Personal Financial Services (AUPFS) chief executive Steve Davis announced the company has executed a non-binding offer under which it would acquire all of the shares of the non-aligned licensee.
“Premium is a successful business, with a high quality group of advisers that has substantial revenue, funds under advice and clients, and will be a significant contributor to increasing the scale and strength of Australian Unity Personal Financial Services,” Mr Davis said.
"Importantly, it will be business as usual for Premium’s authorised representatives and clients,” he added.
Mr Davis said the acquisition would “better position” the company to take advantage of opportunities in the accounting sector as well as to absorb regulatory and legislative change.
Speaking to InvestorDaily, Premium Wealth Management chief executive Paul Harding-Davis said that while the acquisition has not yet been approved, Premium’s board and executive team has recommended shareholders vote in favour of the proposal, giving a level of “cultural alignment” between the two organisations.
“We are very comfortable with the structure of culture of Australian Unity,” said Mr Harding-Davis.
“We have gotten to know the business and its managerial team very well in recent times. As a not-for-profit and a mutual, they are clearly very focused on the concept of wellbeing and have the very best interests of the consumer in mind,” he said.
Mr Harding-Davis said the acquisition would allow Premium to compete in a “predominantly vertically-integrated world”, said Mr Harding-Davis.
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