InvestorDaily first reported the approval of CBA’s proposal by the directors of Commonwealth Managed Investments Limited (CMIL) back in December last year.
CMIL chairman Richard Haddock said an independent expert concluded that the “proposal is fair and reasonable and in the best interests of, non-associated CFX securityholders.
Mr Haddock said the internalisation will improve the structure of the company.
“CFX will have an enhanced platform that provides scale and diversification benefits as well as opportunities for incremental growth,” he said.
“Internalisation will also replace fees paid to the Bank by CFX, with lower directly incurred costs over which CFX has greater control.”
Mr Haddock said internalisation will also provide an opportunity to reform the board.
Existing independent CMIL directors will stay on the CMIL and CFX Co boards while non-independent directors will resign their positions following the implementation of the proposal.
“Post implementation, the CFX Co Board will invite two non-executive directors to be nominated by the Gandel Group,” said Mr Haddock.
“In addition, a further two independent non-executive directors are to be appointed in due course.”
