Diverger makes $65m bid for Centrepoint Alliance

With a 20% interest already under its belt, Diverger is looking to acquire 100% of Centrepoint Alliance.

Yesterday, the listed advice group entered a call option deed with TIGA Trading and Thorney Holdings in respect of 19.99% of Centrepoint. This was followed by a non-binding and indicative proposal to the Centrepoint board to acquire all the company's shares.

Centrepoint has now entered a trading halt, pending the release of an announcement regarding the proposal.

Under the offer, Centrepoint shareholders would receive a mixture of cash and Diverger shares, with each Centrepoint share valued at $0.325. It's expected the maximum consideration for both would total $31.8 million and $31.8 million, respectively.

Sponsored Equity Headwinds often an Infrastructure Tailwind

The offer price represents a 30% premium on Centrepoint's closing price on June 22 and 29.8% premium on the volume weighted average price of the last six months.

Diverger also said it is open to paying a dividend of up to $0.02 per share, provided a minimum balance of $8 million remains upon completion. This would have no impact on the offer price.

If successful, Diverger's financial adviser network balloon; Centrepoint's comprises about 1200 advisers, including some that are self-licensed. Combined, the two firms service more than 1400.