AUS
NZ
UK
CA
USA
IND
Highlights
- Acquisition: Bell Financial Group (BFG) has entered into a Scheme Implementation Deed (SID) to acquire SelfWealth (SWF) for AU$57.7 million.
- Consideration: SelfWealth shareholders can choose between cash, scrip in BFG, or a combination, with scrip capped at 50% of the total consideration.
- Synergies: The acquisition will enhance BFG’s online broking business, adding almost 130,000 active portfolios and boosting sponsored holdings by AU$11 billion.
Bell Financial Group Ltd (ASX:BFG) has announced that it has entered into a Scheme Implementation Deed (SID) with SelfWealth Ltd (ASX:SWF) to acquire 100% of SelfWealth's shares. The deal values SelfWealth at approximately AU$57.7 million, with the consideration set at AU$0.25 per share.
Consideration and Shareholder Options
Under the terms of the agreement, SelfWealth shareholders can elect to receive their compensation in cash, scrip (BFG shares), or a combination of both. The scrip portion of the deal is capped at 50% of the total consideration, giving shareholders some flexibility in how they receive payment.
Strategic Rationale
This acquisition is expected to significantly expand BFG’s online broking business, enhancing both revenue and cost synergies. The deal will add nearly 130,000 active portfolios to BFG’s client base and increase the company’s sponsored holdings by AU$11 billion, bringing the total to AU$94 billion. BFG anticipates that the acquisition will be materially accretive to its earnings per share (EPS) following integration.
Bell Financial Group Chairman, Brian Wilson AO, stated, “We look forward to working with SelfWealth to ensure a smooth integration of our two businesses with minimal client disruption. Our intention is to maintain the SelfWealth brand and continue enhancing the client value proposition, which we expect will lead to ongoing growth.”
Board and Shareholder Support
The SelfWealth Board has unanimously recommended that shareholders vote in favor of the Scheme. All SelfWealth directors have indicated their intention to vote in favor of the proposal, provided there is no superior offer and the independent expert confirms that the Scheme is in the best interests of SelfWealth shareholders.
Transaction Conditions
The transaction is subject to customary conditions, including SelfWealth shareholder approval, no material adverse changes, court approval, and other usual terms such as exclusivity and break fees. The Scheme meeting for SelfWealth shareholders is expected to be held in March 2025, though the deal is not guaranteed to close as it depends on these conditions being met.
