Praemium has successfully completed its $70 million off-market takeover of Powerwrap.
Henslow has advised Powerwrap in relation to the off-market takeover by Praemium. As part of the transaction, Praemium offered 7.5c cash per share and one Praemium share for every two Powerwrap shares, which equates to a deal value of $70 million at the date the offer went unconditional. The merger will create one of Australia’s largest independent specialist platform providers with combined funds under administration of over $28.8bn.
Powerwrap is one of Australia’s leading wealth management platforms, offering a comprehensive suite of investment, administration and shared services to High Net Worth Investors. The transaction will allow Powerwrap to further leverage Praemium’s suite of enhanced technology, complementing it’s already strong service capability in the High Net Worth Investor market segment.
Henslow acted as the sell-side advisor to Powerwrap, supporting the Board through the entire sale process, including from initial strategic review and takeover defence, through to the Board reaching unanimous support for Praemium’s offer and full divestment – ultimately achieving the 90% compulsory acquisition hurdle.
Forming one of Australia’s largest independent specialist platform providers
Praemium’s reporting and administration strength combined with Powerwrap’s execution capabilities and broad range of alternate investment opportunities will create a highly attractive proposition as a specialist platform solution. The combined business will benefit from improved inflows, greater scale, international reach, a more diversified customer base and a larger and more flexible balance sheet.
Creating value for Powerwrap shareholders
At the time of its announcement, the indicative value of Praemium’s takeover offer represented an attractive premium of 64.6% to Powerwrap’s 1-month VWAP of $0.161. Through the issue of Praemium scrip, the merger also provides Powerwrap shareholders with greater liquidity through exposure to a company with a larger market capitalisation and benefits from a potential valuation re-rate.
A partnership with greater scale and a stronger market position
Henslow’s extensive range of public market capabilities have helped create a seamless sell-side process. We look forward to seeing this newly formed merger grow as they strive to become one of Australia’s largest independent financial services platform.
Want to discuss this transaction further? Get in touch with the Henslow team below.