Global platform provider Praemium has launched a A$55.6m (£30.4m, $38.4m, €33.9m) takeover offer for Australian wealth management platform Powerwrap.
The offer is for all the issued shares of Powerwrap that it does not already own, as Praemium currently owns 14.7% of Powerwrap.
It is subject to several conditions, including 90% minimum acceptance by Powerwrap shareholders, who have been recommended to accept the offer.
Funds under administration of the combined group would be more than $27bn.
The combined company would have recorded revenue over the past 12 months of A$65m.
Formidable force
Michael Ohanessian, Praemium chief executive, said: “We know Powerwrap well as one of their core technology partners. Together, we are stronger with significant synergies between the two companies and higher growth potential in a combined entity.
“We believe the merged company would be a formidable force in the Australian platform industry, and are happy that the Powerwrap board sees the value and has recommended that their shareholders accept the offer to share in the success of a larger and better combined company.”
Praemium will lodge a copy of its bidder’s statement with the Australian Securities and Investments Commission (Asic) and send a copy to the Powerwrap board and the Australian Securities Exchange (ASX) on 16 July 2020.
