WEST Perth-based Centrepoint Alliance plans to merge with financial services provider Professional Investment Holdings through an all-scrip offer that is effectively a reverse takeover.
Brisbane-based PIH has a national network of 1417 financial advisers and 1,400 accountants.
As at April 30 2010, funds under administration are more than $18 billion, insurance premium in-force is at $170 million, and loans under administration are at $4 billion.
The group also attracts revenue from 168 AFSL holders (financial advisers) that utilise dealer group services and has interests in funds management companies, offshore financial planning groups and a number of administration platforms in Australia.
Post-merger, PIH will be the wealth management arm of Centrepoint Alliance, alongside the existing commercial finance division.
Centrepoint Alliance will continue to run its insurance premium funding business, which has been trough a major restructuring over the past year after the group ran into funding pressures.
Centrepoint has been run since July last year by Melbourne-based Tony Robinson, who was previously chief executive of IOOF Holdings and before that the OAMPS insurance broking business.
On completion of the proposed transaction, Mr Robinson will remain as managing director of the merged group.
The proposed merger is conditional upon due diligence and customary regulatory approvals and will be implemented through a Scheme of Arrangement requiring the support of both companies’ shareholders.
“The current environment together with the benefits of being part of a broader listed business provides a strong platform for growth in the changing wealth management industry,” Centrepoint Alliance chairman Rick Nelson said.
“Both PIH and Centrepoint are focused on opportunities to expand our businesses and we look forward to the opportunity of creating a stronger more diversified financial services group.”
PIH chairman Stephen Murphy said the merger was a “compelling partnership” between Centrepoint Alliance and PIH.
“It represents a significant step in building one of Australia’s leading independently-owned financial services groups,” he said.
