Commonwealth Bank of Australia (CBA) has announced its intention to acquire the whole of wealth management and broking company IWL Limited (IWL) for more than $370 million.
CBA and IWL have entered into a scheme implementation deed proposing CBA will acquire all of the issued capital in IWL for about $373 million or $6.57 per share, less any dividend paid by IWL for the period ended June 30, 2007.
IWL shareholders will receive the consideration wholly in cash or through CBA shares to an equivalent value, under the proposed arrangement.
The IWL board unanimously recommended shareholders accept the scheme in the absence of a superior offer and subject to an independent expert's report, concluding it is in the best interests of IWL shareholders.
The offer represents a premium of 11.7 per cent to the last closing price, 22.5 per cent to the three-month volume weighted average price (VWAP) and 29.3 per cent to the six-month VWAP as at the close of trade on July 31, 2007.
An integral part of the offer was ensuring the support of IWL founder and chief executive Otto Buttula.
Buttula has entered into an option deed with CBA over his 13.1 per cent direct shareholding and related interests in IWL, the details of which will be disclosed by CBA in a substantial holder notice to be lodged with the Australian Securities Exchange.
In April, IWL sold its financial advisory software, VisiPlan, to Iress for around $50 million. Iress also owns competitor Xplan.
