Bell Financial Seals $57.7M Deal to Acquire Selfwealth

3 min read | November 25, 2024 02:07 PM AEDT | By Team Kalkine Media

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Bell Financial Seals $57.7M Deal to Acquire Selfwealth — Image source: shutterstock

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Highlights

Bell Financial Group (BFG) secures Selfwealth (SWF) in a $57.7 million deal.

AxiCorp's competing bids raised the final offer price for Selfwealth.

Shareholder approval and regulatory clearance are pending.

The acquisition landscape shifted decisively as Bell Financial Group (ASX:BFG) emerged as the successful bidder for Selfwealth (ASX:SWF) after outmaneuvering a late bid by AxiCorp Financial Services. This deal, valued at $57.7 million, positions Bell Financial to acquire complete ownership of Selfwealth, marking a pivotal moment in the competitive financial services sector.

Selfwealth has confirmed it entered into a scheme implementation agreement with Bell Financial. Originally, Bell’s offer stood at $51 million, but a subsequent bid from AxiCorp forced the group to revise its offer upward. Selfwealth’s board considered the revised proposal and deemed it to be in the best interest of stakeholders. Consequently, the takeover offer of 25 cents per share represents a premium of 108% over Selfwealth’s last closing price on November 12.

AxiCorp's involvement briefly intensified the bidding war. CEO Rajesh Yohannan expressed strong enthusiasm during the process, making several offers before stepping aside. Despite this competitive backdrop, Selfwealth’s board unanimously recommended accepting Bell Financial’s proposal.

The acquisition still requires shareholder approval, along with regulatory and court clearances, before it can be finalized. A shareholder meeting is expected to take place in March next year to move forward with the scheme. Bell Financial’s chairman, Brian Wilson, emphasized that the Selfwealth brand will remain largely intact after the deal is completed. The focus will be on achieving a seamless integration of operations to enhance the value proposition for clients while minimizing disruptions.

This marks the first successful acquisition attempt for Selfwealth, following a prior takeover offer in 2022 by online stockbroker Stake, which was declined. Stake had proposed a deal valuing Selfwealth at 17.5 cents per share. Another potential merger with wholesale clearing platform Openmarkets in the same year was also explored but ultimately did not materialize.

Founded in 2012 by Andrew Ward, a former CBA banker, Selfwealth has evolved into a recognized player in the financial services industry. The announcement has stirred investor interest, with Bell Financial Group last trading at $1.31 after the news broke.

Pending the completion of this deal, the partnership is set to shape future growth strategies for both organizations, with a focus on leveraging synergies and expanding client offerings.

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