Chant West parent ASX-listed Chant West Holdings told shareholders that it had reached a settlement with Zenith subsidiary CW Bidco, on its Supreme Court proceedings it commenced after the buyer reversed out of buying the superannuation research hub.
CW Bidco and Chant West Holdings signed off on a business sale agreement in February, saying CW Bidco would buy the superannuation research hub for $12.5 million.
But CW Bidco indicated at the end of March that it would be pulling out of the deal in light of the coronavirus-shaken market conditions.
Chant West Holdings then launched the legal action in April, seeking an order for specific performance against CW Bidco, compelling it to complete the sale.
As a result of the settlement, the sale agreement was completed with effect at 11:59pm on 30 June, with the proceedings against CW Bidco dismissed.
Zenith chief executive David Wright said: “Whilst there has been a recent delay to completion, we have retained our high confidence in the Chant West team, in the client commitment of the business and in its dedication to improving and expanding its service delivery to clients.
“We share that dedication and look forward to building on the opportunities that our combined group can deliver to clients and staff.”
Chant West has 70 staff across offices in both Sydney and Melbourne, while Zenith has around 40 staff in Melbourne working across research, managed account consulting, IT and distribution functions.
Chant West Holdings indicated it has plans to return surplus capital to shareholders and will reveal more in the near future.
The company also sold financial planning software vendor Enzumo for $1.5 million to financial advice service provider Centrepoint Alliance in mid-June after the Chant West sale hit its bump.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].