New plan for Plan B
Financial planning business Plan B Wealth Management looks set for new ownership after a takeover bid was made for its ASX-listed parent company.
Tuesday, July 24th 2012, 7:15AM
by Niko Kloeten
The board of Plan B has accepted the an all-cash offer from fellow Australian planning firm IOOFat A60c per share,valuing Plan B at A$49.1 million.
And IOOF, which needs to secure 90% shareholder support with the offer, looks to be eyeing access to KiwiSaver market as one of the benefits it will get from its takeover.
Plan B, which started out in Perth, has expanded around Australia and also has offices in six locations in New Zealand.
It said in an announcement to the ASX that its board had accepted the offer because it represented a 33% premium on the A45c its shares were trading for at the time of the offer.
"Plan B understands that the Bidder's Statement will be lodged with ASIC on or about 26 July 2012 and despatched to Plan B shareholders on or about 9 August 2012, withthe Target's Statement to follow shortly thereafter," Plan B said in its announcement.
"The Offer is expected to be open for acceptance by Plan B shareholders until 11 September 2012, subject to IOOF's right to extend the offer period in accordance with the Corporations Act."
IOOF said the purchase would add A$2.2 billion to its funds under management; it also said it would help it gain access to New Zealand's retirement savings market.
KiwiSaver is by far the fastest-growing part of the New Zealand funds management industry, growing from 8.5% of total funds under management in March 2010 to 16.8% in March this year, according to the latest Reserve Bank figures.
Plan B's New Zealand chief executive John Atkinson said he wasn't authorised to talk about the takeover and what it will mean for the New Zealand business.
Niko Kloeten can be contacted at email@example.com
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