Selfwealth Ltd Faces Competing Acquisition Offers from Axi and Bell
SELFWEALTH LIMITED (SWF) Share Update November 2024 Wednesday 13th
Selfwealth Receives Competing Acquisition Proposals from Axi and Bell
Selfwealth Ltd (ASX: SWF) has announced that it has received two non-binding acquisition proposals, one from AxiCorp Financial Services Pty Ltd and another from Bell Financial Group Limited, offering $0.23 and $0.22 per share respectively.
Instant Summary:
- Axi proposes to acquire Selfwealth for $0.23 per share.
- Bell offers $0.22 per share with a scrip consideration alternative.
- Axi's proposal is not subject to due diligence or financing conditions.
- Both proposals are non-binding and subject to customary conditions.
- Selfwealth's board must unanimously recommend the Axi proposal for it to proceed.
Overview of Proposals
Selfwealth Ltd has received two acquisition proposals, each aiming to acquire 100% of the company's shares. AxiCorp Financial Services Pty Ltd, a global online brokerage firm, has proposed a cash offer of $0.23 per share. This offer is structured as a scheme of arrangement and is subject to several conditions, including the cancellation of existing performance rights and a unanimous recommendation from the Selfwealth Board.
In contrast, Bell Financial Group Limited has made a competing offer of $0.22 per share, also by way of a scheme of arrangement. Bell's proposal includes a scrip consideration alternative, allowing shareholders to choose between cash or shares. Both proposals are currently non-binding and indicative, meaning there is no certainty that they will result in a binding transaction.
Conditions and Next Steps
The Axi proposal is notable for not being subject to due diligence or financing conditions, which could expedite the process if accepted. Axi has expressed its willingness to negotiate and sign a binding implementation deed quickly. However, the proposal requires the Selfwealth Board's unanimous recommendation and a commitment to vote in favor of the proposal, provided no superior offer emerges.
Selfwealth has advised its shareholders that no immediate action is required concerning either proposal. The company will continue to update shareholders in line with its continuous disclosure obligations.
The competing proposals from Axi and Bell could lead to increased volatility in Selfwealth's stock price as investors react to the potential acquisition. Axi's higher offer of $0.23 per share may be more attractive to shareholders, potentially increasing the stock's market value. However, the non-binding nature of both proposals means that investors should remain cautious until a definitive agreement is reached.
Investor Reaction:
Analysts are likely to view Axi's proposal favorably due to the higher offer price and the absence of due diligence conditions. The market may see increased trading activity as investors speculate on the outcome of these proposals.
Conclusion:
Investors should closely monitor developments regarding Selfwealth's acquisition proposals. Both offers present potential opportunities, but the final outcome remains uncertain. Shareholders are advised to stay informed and consider the long-term implications of either proposal on their investment strategy.