- Financial services company Euroz (EZL) is implementing its off-market takeover bid for West Australian brokerage firm Hartleys
- Euroz is offering Hartleys shareholder roughly 33 million new Euroz shares in exchange for their previously held interest
- Once the deal finalises, Hartleys will merge with Euroz Securities to create Euroz Hartleys, forming a new board in the process
- The deal is expected to finalise in October, but is subject to a number of closing conditions
- Euroz shares are grey today, trading for $1.15 each
Financial services company Euroz (EZL) is implementing its off-market takeover bid for West Australian brokerage firm Hartleys.
Hartleys was founded in WA in 1955 and specialises in corporate finance, stockbroking, wealth management, institutional sales, and targeted research services.
Through the offer, holders of Hartleys will be issued 3.3033304 new shares in Euroz for every previously owned share. This amounts to roughly 33 million new Euroz shares, or around 17 per cent of the resulting company.
The deal is expected to finalise in October but is subject to a number of closing conditions, including a minimum acceptance of 90 per cent and no objections from the relevant government authorities.
Euroz will also need to execute employment agreements with currently employed Hartleys shareholders.
Once the deal finalises, Hartleys will merge with Euroz Securities to form Euroz Hartleys. Following the merger, four Euroz board members will resign and Hartleys’ current directors, Richard Simpson and Ian Parker, will join the resulting company’s new board.
Commenting on the deal, Ian said the merger with Euroz provides an opportunity to build on Hartleys’ strong history of providing exceptional service to our clients.
“The combination of the two firms offers the opportunity for our entire team to expand our service offering to clients and we are confident in our ability to successfully integrate both businesses and our client-focused cultures,” he added.
Meanwhile, Euroz Executive Chairman, Andrew McKenzie believes the merger will create a company with a strong balance sheet, critical scale, strong operational synergies, as well as solid recurring and transactional revenues.
Euroz shares are grey today, trading for $1.15 each at 10:13 am AEST.