A number of institutions have failed in their bids to gain ownership of Dunedin-based broking firm Forsyth Barr. Instead a group of the company's senior executives have bought a 35 percent stake in the national broking and funds management business.
Major shareholders Michael Devereux, Stock Exchange chairman Eion Edgar, and Michael Sidey have each sold part of their holdings to this group which includes; John Gallaher, John Bell and Paul Chamberlain of Dunedin, Peter Wardell of Christchurch and Andrew McDouall of Wellington.
No price has been disclosed for the sale.
Edgar, who is retiring as managing director to become chairman, says the sale process was triggered last year when three parties approached the shareholders with offers to buy the firm.
The management team also put up their hand with an offer to buy part of the firm once the shareholders decided to entertain these offers.
He says the management buy-in was successful as it was best for clients and staff and it provided financial security.
As part of the deal the management group was currently finalising the formation of a strategic operational alliance with several major offshore securities groups.
Edgar says the 65 per cent still owned by himself Devereux and Sidey could be sold to a strategic partner in the future.
He says it was better for the firm to get to know its partners before doing a deal on ownership.
"It's better to have a honeymoon as opposed to a shotgun wedding," he says.
Another future option was to sell some of the firm to brokers wanting to join the company and have an equity stake in the business.
Forsyth Barr will keep its head office and administrative functions in Dunedin.
Michael Sidey is taking over the position of managing director, and Devereux is retiring as chairman.
Forsyth Barr has eight offices nationally and more than $500 million under management.
At least five parties were interested in buying the firm. Bankers Trust is the only of those potential suitors to have been identified.
A number of institutions have failed in their bids to gain ownership of Dunedin-based broking firm Forsyth Barr. Instead a group of the company's senior executives have bought a 35 percent stake in the national broking and funds management business. 