Listed financial services group Tranzact Financial Services (Tranzact) has announced it is in discussions with Grosvenor Financial Services (Grosvenor) over a possible merger of both businesses.
In a statement released to the Australian Securities Exchange on Friday, Tranzact chairman Philip Harry confirmed the group is in talks with its major shareholder Grosvenor (59.8 per cent).
Harry said while no formal merger proposal has been put to either of the company’s boards, the talks between Tranzact and Grosvenor are expected to continue.
“The discussions have been friendly and will continue. It is likely that any formal merger discussion will only take place if both parties can demonstrate sufficient synergistic benefits for their respective shareholders and agree upon appropriate terms,” he said.
In June this year Tranzact reported a net profit of $631,000.
Two weeks ago, Tranzact reaffirmed its commitment to growth by purchasing stakes in two planning practices.
It has acquired a 20 per cent stake in Wellington-based Cranfield Insurance and Investments, which has two advisers.
Tranzact has also acquired 20 per cent stake in HKF Rutherford Rede, based in Christchurch.
Tranzact has made seven acquisitions since its Partnership for Growth program began in New Zealand in April.
