Plan B staff could face potential redundancies with IOOF signalling its intention to review the dealer group’s operations following approval of its takeover bid.
In its bidder statement, lodged to the Australian Securities Exchange yesterday, IOOF outlined its plans to conduct a review of the Plan B’s operations, including all assets, obligations, structure, strategy and employees, should its offer be accepted.
Subject to undertaking the review, IOOF expects that there will be some corporate, managerial and operational duplication of business, the company said.
“As such, certain positions will become redundant,” IOOF said in the statement.
“However, IOOF cannot determine the extent of such redundant positions until it has completed its review.
“It is not possible for IOOF to offer alternative roles to employees holding those positions, it is expected they will be offered redundancy packages in accordance with Plan B’s redundancy policies and applicable employment laws.”
IOOF said it is also the company’s intention to maintain Plan B’s Perth operation, with the potential for some functions to be relocated to IOOF’s head office in Melbourne.
“IOOF’s and Plan B’s businesses share some common features and requirements and IOOF anticipates that the underlying assets of Plan B will integrate effectively and easily into IOOF’s business over time, providing the opportunity for beneficial recurring synergies by 30 June 2014,” the company said.
“IOOF has no current intentions to dispose of any parts of Plan B’s business or materially change the services offered by Plan B.”
Earlier this month, IOOF made an all-cash offer to acquire all Plan B’s for $0.60 per share.
At the time of the offer, Plan B directors unanimously recommend that Plan B shareholders accept IOOF’s bid in the absence of a superior proposal.
The offer is scheduled to close on 11 September 2012.
