IOOF bids $49.1m for Plan B

Shares in Perth-based funds manager Plan B are soaring after national wealth manager IOOF Holdings announced a $49.1 million takeover proposal.

The companies said today they had entered agreement for IOOF to acquire all of Plan B’s shares for 60 cents each.

The directors of Plan B have unanimously recommended shareholders accept the offer.

By close of trade, Plan B shares had gained 31.1 per cent, trading at 59 cents.

Plan B managing director Andrew Black said the takeover plan would be mutually beneficial to the two firms.

“This transaction will bring together two like-minded businesses that are focused on delivering high quality services to clients,” Mr Black said in a statement.

“We will be able to access a stronger financial base of a much larger group while preserving the unique relationship with our clients.”

IOOF managing director Christopher Kelaher said benefits of the plan included access to the growing New Zealand retirement savings market, opportunities to grow its adviser reach in WA and Queensland, and an increase in scale in advice, administration and investment management, with the addition of $2.2 billion in funds under management.

“The acquisition of Plan B represents a unique opportunity to combine two highly complementary businesses,” Mr Kelaher said.

“The recent market volatility has illustrated the importance of size and scale in terms of competitive position.”