investor daily logo

Finsia sale result imminent

By Victoria Young
2 minute read

The fate of the Financial Services Institute of Australasia (Finsia) Education will be made today.

Anxious practitioners, members and students will learn the fate of the Financial Services Institute of Australasia (Finsia) Education today.

Finsia members have been on tenterhooks since the ballot closed on June 14 on the $36 million deal with United States-based Kaplan.

Industry practitioner representatives Giles Gunesekera, Steve Chambers and John Livanas received scores of emails against the sale, and several in support.

"Reading what everyone's telling me recently, I believe it'll be a landslide to the no camp," Gunesekera said.

"I was heartened to see the genuine level of interest and passion out there among the membership. There's more risk in selling than in holding on - Finsia's a market leader."

A large cross section of students and Finsia practitioners past and present were saddened by the prospect of losing the education business, he said.

In an embarrassing gaffe, some members in New South Wales and the Australian Capital Territory received voting papers and a letter stating they were not allowed to vote.

Finsia quickly corrected the mistake, sending a corrected letter, but no additional ballot papers.

It was feared members may have discarded their voting papers and not been able to vote in time.

In a letter to members, Kaplan chairman and chief executive officer Jonathan Grayer said he was honoured to have the opportunity to work with the largest and most successful organisation of financial services professionals in Australia and New Zealand.

"Like Finsia, we are building bridges with the industries and customers we serve, and providing people with practical training that can help them advance their careers," Grayer said.

If the sale goes ahead, the board will have a $45 million financial base to focus Finsia on being a professional membership services organisation.

A newspaper company made a rival bid and attempted to influence the votes of Finsia members to overturn the Kaplan deal.

Fairfax topped Kaplan's bid by $6 million by offering $42 million for Finsia Education. Directors of Finsia rejected the bid because of its conditions.