The Tauranga-based company has entered into a deal to create a joint venture with its current shareholder Deutsche Bank and ASX-listed Wilson HTM.
Wilson Investment Group is planning to spin off its sharebroking and advisory business into a new entity, initially called Wilson HTM Securities and Advisory, with staff and Craigs each owning 40% of the company, and Deutsche Bank owing the remaining 20%.
Deutsche Bank currently owns 49.9% of Craigs and is a shareholder in Wilson HTM.
Craigs Investment Partners chairman Neil Craig says the deal will help its New Zealand investor clients as they will get better access to IPOs and placements, plus Wilson HTM does a lot of research in small and mid cap Australian stocks.
Craig says the growth opportunities for the business are limited in New Zealand, although it wants to recruit more advisers and possibly add a couple more offices.
The model in Australia is similar to New Zealand where staff have a stake in the business as does Deutsche Bank - a major global bank.
He says the ownership structure is "a formula which is working." Being able to grow the business is a "motivator" for the company's owners, he says.
Under the deal to create the new business Craigs and Deutsche Bank will pay $3 million and Wilson staff will contribute $2 million with half of that being vendor finance.
| « Researchers quiet on investigation | IFA working on pro-bono offering » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved