Australia's Netwealth offers to buy Praemium for $590 mln (updated)
01/11/2021 23:34
(Adds Praemium's response, details on proposal, share movement)
Nov 2 (Reuters) - Australian wealth manager Netwealth Group
NWL.AX said on Tuesday it has offered to buy Praemium Ltd
PPS.AX for A$785 million ($590.40 million) to beef up its
platform for asset management.
The wealth manager's bid consists of one company share for
every 11.96 shares of Praemium, implying a bid of A$1.5 apiece.
The offer represents a 20% premium to Praemium's last close.
Praemium said in a separate statement that the offer
undervalues the company, but it would be open to engaging with
the bidder.
"Any proposals put forward should appropriately reflect
Praemium's market position and growth potential as well as
recent activity in the sector," the company said.
Its shares jumped 19.3% to a record A$1.485 in early trade.
Netwealth said the combined group would account for an
Australian funds under administration platform of about A$72
billion with another A$22 billion in non-custodial assets.
The wealth manager added that the combined group would also
be the largest independent wealth management platform in
Australia by net flows.
($1 = 1.3296 Australian dollars)
(Reporting by Riya Sharma in Bengaluru; Editing by Aditya Soni)
((Riya.Sharma@thomsonreuters.com;))