WHK Group, which owns accounting firm Crowe Horwath, is evaluating a merger proposal from SFG Australia, which owns accounting and financial planning firms including Western Pacific and Shadforth.
Key terms of the proposal between the two listed companies include a merger ratio of 0.503 WHK shares for each SFG share.
This would result in WHK shareholders owning around 42 per cent of the securities in the merged entity.
The new board of directors and management would be shared between SFG and WHK, the companies said.
The proposal remains subject to a number of conditions, including due diligence, transaction documentation and unanimous recommendation of the WHK board.
The tie-up was first flagged in October, when SFG approached WHK with a merger of equals proposal.
“Having now received a proposal for consideration, it is the WHK board’s intention to evaluate the proposal and form a view on how to proceed,” the company said in a statement.
“There is no certainty that the proposal will lead to a transaction.”