DKN Financial Group (DKN) Board members have agreed to a proposal from IOOF to acquire 100% of shares in the advice group.
IOOF first approached DKN on 14 June 2011, with an offer of $0.75 per share. At the time, DKN issued a statement saying that while discussions with IOOF were proceeding, ‘a transaction may or may not eventuate from the proposal’.
Following discussions with IOOF, the DKN Board has now agreed unanimously to a new agreement, which will see shareholders paid at a rate of $0.80 per share.
DKN chairman, Rob Hunwick, said: “The Independent Directors have carefully examined the value and terms of IOOF’s New Proposal. We have sought advice from our financial and legal advisers and consulted with shareholders.
“This is an opportunity for DKN shareholders to realise value inherent in DKN and the Independent Directors recommend the New Proposal, in the absence of a superior proposal and subject to the review of an independent expert.”
IOOF has indicated it intends to maintain the current Lonsdale Financial Group operating model and client proposition.
DKN CEO, Phil Butterworth, said IOOF had a proven track record of managing multiple brands, and that this “provides comfort that the Lonsdale Financial Group will continue to provide quality services and support, as it has done historically”.
DKN shareholders will have the opportunity to vote on the transaction at the Scheme Meeting, which is likely to be held in September.
