CBG Asset Management principal Ronni Chalmers and his senior staff will join Clime Investment Management in an acquisition worth up to $3.63 million.
The deal includes $3.25 million on completion and a further $375,000 in 12 months based on retention of CBG's $130 million in FUM (as well as other "agreed outcomes").
The initial consideration will see the issue of 6,500,000 ordinary shares in Clime at 50 cents per share, being the weighted average market price over the past 30 trading days.
The balance of 750,000 Clime shares, which are subject to "agreed outcomes", are to be issued on 30 June 2018.
CBG's balance sheet, to be acquired by Clime, will include $500,000 in net cash and "substantial" franking credits.
Commenting on the merger, Mr Chalmers said, "The combined funds team will offer a deeper and broader research capability. The extended product list will be of immense interest to CBG clients."
Clime director John Abernethy said, "Ronnie Chalmers and his investment team will make a valuable contribution to the on-going growth of Clime and to the wealth generation of his and our investors".
