IOOF’s takeover of dealer group Plan B is proceeding as planned, with the listed financial services firm unconcerned about possible adviser exits, the company’s managing director said.
IOOF managing director Christopher Kelaher told InvestorDaily the planned bid was “proceeding according to expectation”.
“We are at 20 per cent [shareholder] acceptances. It is proceeding according to expectation, that in itself will be an increment to the groups undertaking in 2013,” Kelaher said.
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, which is subject to a 90 per cent shareholder acceptance level.
But Kelaher said there are no concerns that advisers will look to exit for another dealer group.
“I think it’s the reverse, people will be wanting to join us,” he said.
“We will hopefully be the best managed group there so people will be attracted to us. Since the announcement we have been approached by other firms wanting to join.”
He said IOOF is also planning further expansion through more acquisitions and organic growth.
“We have two growth planks into the future. One is organic growth which is improving the quality of our products and increasing the number and quality of advisers that partner with it,” Kelaher said.
“And then corresponding to that, given all the regulatory change there has been a heightened opportunity for us to acquire new business to grow our business as well.”
In July IOOF lodged a bidder statement to the Australian Securities Exchange outlining 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.
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.
Earlier in the 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.
In other news, IOOF posted an 81 per cent loss on its net profit after tax at $19.4 million for the 2011/2012 financial year ending 30th June.
The company cited retrospective changes in Australian income tax regulations which required it recognise a $63 million deferred tax liability for the decreases.
Underlying net profit after tax pre-amortisation reached $96.4 million, a 14 per cent deficit year-on-year.
Funds under management, advice, administration and supervision increased one per cent to $107.3 billion as a result of continued outperformance of IOOF’s flagship net flows and the DKN acquisition completed in late-2011.
“IOOF has performed positively in light of difficult external conditions during the year, particularly in comparison to its peers,” Kelaher said.
