Nine Entertainment Holdings has agreed to buy a $13 million stake in the Mark Bouris led wealth management firm Yellow Brick Road Group (YBR) as part of a new strategic financial services alliance.
Under the deal, the owner of Channel Nine plans to invest $13 million in cash and kind to own 19.9 per cent of YBR’s ordinary shares at a price of 40 cents per share.
Half of the investment will be in cash and the other 50 per cent would be provided as contra advertising on Nine’s media properties over a period of five years, YBR and Nine said in a statement.
“YBR was built from a disruptive business model, and we believe that having access to quality financial advice should be available to all Australians, not just the chosen few,” YBR executive chairman Mark Bouris said.
“The partnership with Nine will enable Yellow Brick Road to build our brand with the backing of the best media company in the business, which will give us the strength and reach to make a substantial impact in the financial services category.
“Through this alliance, I believe we’ll see a great outcome for YBR, its shareholders, Nine, and most importantly the Australian consumer.”
Upon completion of the investment it’s expected that a person would be nominated by Nine to join the board of directors of YBR.
The deal is subject to a number of conditions including a due diligence process, all necessary approvals, completion of Yellow Brick Road’s backdoor listing on the Australian Securities Exchange via ITS Capital Investments and the intended public capital raising by YBR.
The YBR deal will be Nine’s first commitment in the finance market, Nine chief executive David Gyngell said.
“We have worked with Mark Bouris and his team before and had great success, and we are very confident that YBR has the people, the business model and the know-how to make a positive and crucial difference in the financial services sector,” he said.
