On 13 November, it was announced that Selfwealth had received a takeover bid from Bell Financial Group for 100 per cent of the company at $0.22 cents per share. This valued the company at $51 million on a 100 per cent equity basis, an 83 per cent premium to the last close share price of Selfwealth of $0.120.
However, the following day, global online brokerage firm AxiCorp Financial Services made its own offer for $0.23 cents per share.
Selfwealth said it received “multiple indicative, non-binding and confidential proposals from a number of parties”. In light of the two bids from Bell and Axicorp, it said it undertook a structured process which allowed both parties to improve their bids.
On Monday, 25 November, Selfwealth confirmed it has entered into a scheme implementation deed with Bell after it made a higher bid of $0.25 cents per share which values the company at $58 million.
In an ASX statement, it said: “The revised Bell proposal values Selfwealth at approximately $58 million on a 100 per cent equity basis and represents a 108 per cent premium to the last close share price of Selfwealth of $0.120 as at 12 November 2024, being the day immediately prior to announcement of Bell’s initial public proposal.
“After careful consideration of the revised Bell proposal, in particular its value and conditionality, Selfwealth considers it is in shareholders’ best interests and accordingly Selfwealth has entered into a scheme implementation deed with Bell.”
Bell Financial Group chairman Brian Wilson AO said: “We look forward to working with Selfwealth to ensure a smooth integration of our two businesses with minimal client disruption. Our intention is to maintain the Selfwealth brand and to further develop the client value proposition which we expect will result in ongoing growth.”
He said Bell will benefit from the deal via increased scale in the online broking space, revenue and cost synergies where it will add 130,000 active portfolios to the firm.
A scheme of arrangement meeting with shareholders is expected to be held before the end of March 2024. Under the terms of the scheme implementation deed, Bell will acquire all of the shares in Selfwealth and pay each Selfwealth shareholder $0.25 cents per share in cash.
The Selfwealth board unanimously recommended shareholders vote in favour of the revised proposal.
