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Takeover

Centrepoint board signals talks on Diverger take-over bid

By Mike Taylor27 June 2022

Centrepoint Alliance has signalled it is prepared to meet with Diverger over Diverger’s takeover bid.

In an announcement to the Australian Securities Exchange (ASX) the Centrepoint Board noted the strength of its own proposition but noted that Diverger’s non-binding offering was “expressed as a collaborate approach to build a stronger, larger business with opportunity to participate in future growth, which should be substantial”.

It said the board would meet with Diverger to discuss the offer in the next week and would be updating the market if necessary.

The Centrepoint announcement said the Diverger offer had highlighted the inherent value in Centrepoint which was not represented in the current share price and the strategic merits of industry consolidation.

It said, however, the Diverger offer did not fairly reflect the strategic value of Centrepoint.

Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

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Keen Observer
1 month ago

Would hardly expect the Board to take the first offer. They need actually need to show shareholders they are actually worth having around. Deal will happen. Diverger has tied up the most important shareholder. It’s just a process from here. If they knock it back, then they would want to darn sure their other plan (launching managed accounts) is going to grow the shares.

Frustrated Adviser
1 month ago

Yep, lets have more talks and none of it will be on whats the best thing for advisers and our clients. The sooner we get rid of AFSLs the better. None of the Centrepoint board have an advice background. All they know is product and cost-cutting.

Anon
1 month ago

Very few dealer group management teams have ever known much about advice, nor cared about what’s best for advisers or clients. Because dealer groups don’t exist to provide advice. They exist to distribute inhouse products in a cost effective manner. Centrepoint’s board sounds well qualified for that role. But whoever designed the ridiculous AFSL/AR/CAR licensing model was woefully qualified to serve the interests of society.

Hayne must have been totally inept not to see the licensing model is the root cause of so many problems in financial advice. Let’s hope Levy and Derrington aren’t as dozy or incompetent.