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Euroz, Hartleys to merge

Euroz and Hartleys have made public plans to merge operations, creating a financial services powerhouse in Western Australia.

Announced today, the two firms are set to join forces with Euroz issuing up to 33 million shares at a price of $0.915 each as consideration for 100% of Hartleys. Hartleys shareholders will own about 17% of the combined entity.

Key Hartleys staff will be subject to staff retention measures, with two Hartleys nominees to be appointed to the Euroz board upon completion.

The merger is subject to a 90% minimum acceptance condition and while there is no certainty yet, Euroz said both parties are confident it will be successful with formal binding agreements anticipated to be signed before July 10.

The merger would see the coming together of mutual respect and similar cultures focused on delivering positive outcomes, Euroz executive chair Andrew McKenzie said.

"Hartleys has an excellent reputation as a leading stockbroker, corporate finance, institutional and wealth management business," he said.

"Combining our firms will create a dominant Western Australian based financial services company with a strong balance sheet, critical scale, solid and sustainable revenue, with significant cost and operational synergies."

Hartleys executive chair Ian Parker said all Hartleys staff are excited by the opportunity to join Euroz.

"We are confident in our ability to integrate the two firms and leverage the successful cultures of both to create a significant stockbroking and wealth management business with a bright and prosperous future," he said.

Total funds under management for the combined business would be around $2.5 billion.

Read more: EurozKey HartleysAndrew McKenzieIan Parker
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