Bell Financial Group’s $58M Proposal to Acquire Selfwealth: What It Means

November 25, 2024 11:34 AM AEDT | By Team Kalkine Media

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Bell Financial Group’s $58M Proposal to Acquire Selfwealth: What It Means — Image source: shutterstock

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Highlights

Bell Financial proposes $58M acquisition of Selfwealth via scheme of arrangement.

Deal offers a 108% premium on Selfwealth’s last closing price.

Completion expected by March 2025, pending approvals.

Bell Financial Group (ASX:BFG) has announced a $58 million proposal to acquire all shares of Selfwealth (ASX:SWF) under a scheme of arrangement. This offer values Selfwealth at $0.25 per share, a significant 108% premium to its last closing price of $0.12 before negotiations began. The acquisition aims to strengthen Bell Financial’s digital trading platform and expand its market presence.

Bell Financial, headquartered in Melbourne, operates as a diversified financial services and wealth management company. The group manages over $94 billion in client holdings and provides services like retail and institutional broking, proprietary technology platforms, and lending solutions. Its global operations span key financial hubs, including New York, London, and Hong Kong.

Selfwealth is recognized for its flat-fee trading platform tailored to retail users. The platform offers access to equities listed on both the ASX and US exchanges. A standout feature of Selfwealth is its peer-comparison tool, which enables users to evaluate their portfolios against high-performing investors. This approach has earned Selfwealth a strong position in the online brokerage space.

The acquisition offer presents Selfwealth shareholders with flexible options for consideration. Shareholders can choose between cash, Bell Financial shares, or a combination of both. However, the scrip option is capped at half of the total consideration. If the deal proceeds, Bell Financial expects to add approximately 130,000 active portfolios to its platform, significantly boosting its holdings under sponsorship to $94 billion.

The board of Selfwealth has expressed unanimous support for the proposal, contingent on independent expert advice and shareholder approval. The deal also requires regulatory and court clearances before being finalized. A scheme meeting is anticipated to take place by March 2025 to facilitate shareholder voting.

Bell Financial has indicated that the Selfwealth brand will remain intact following the acquisition. The integration aims to enhance the overall client experience by combining Selfwealth’s technology and user-friendly platform with Bell’s broader financial services expertise. This alignment is expected to strengthen the combined entity's competitive position in the market.

As the financial sector watches closely, the proposed acquisition has the potential to reshape both companies’ offerings and expand Bell Financial’s reach in digital trading services.

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