Stockbroking firm Hartleys has confirmed it is in advanced merger discussions with listed rival Euroz. If the merger proceeds, it would add to a string of changes among Perth’s top corporate finance dealmakers.
Stockbroking firm Hartleys has confirmed it is in advanced merger discussions with listed rival Euroz, which went into a trading halt this morning.
“Discussions are ongoing,” he added.
The firm has 57 shareholders, and Mr Parker said there were no individuals holding more than 10 per cent of the business.
The merger discussions come two months after Euroz chairman Andrew McKenzie announced a loss of $16 million for the nine months to the end of March 2020.
The biggest contributor was the write-down in the value of its listed investment companies, which have always made the company’s reported results highly volatile.
The group’s cash profit for the nine months was a modest $6 million.
Mr McKenzie emphasised the group had a strong balance sheet and would continue to pay a dividend.
He noted that the volatility on equity markets had created a lot of activity on the firm’s retail desk.
Canaccord is the largest broking firm in Perth with 62 client advisers, according to the BNiQ database.
A merger of Hartleys, with 50 client advisers, and Euroz, with 37, would see the combined firm become Perth’s largest.
Perhaps more significantly, Canaccord is the leading Perth broking firm in capital raisings over the past 12 months, by a big margin.
Canaccord has been lead manager or underwriter on 45 capital raisings worth $798 million over that period, well ahead of Hartleys (26 transactions) and Euroz (22).
That reverses the traditional pattern, with Hartleys and Euroz having been market leaders among Perth brokers for the past decade.
If the merger proceeds, it would add to a string of changes among Perth’s top corporate finance dealmakers.
The pending deal has seen Ashanti’s small broking team join Foster Stockbroking.
Just to highlight the tight connections in Perth, Mr Poynton previously held senior roles at Hartleys in the 1980s and early 1990s, in the days when it was known as Hartley Poynton and was the market leader in Perth.