Euroz (ASX:ERZ) - Executive Chairman, Andrew McKenzie
Executive Chairman, Andrew McKenzie
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  • Financial services company Euroz (EZL) has successfully lodged its off-market takeover bid for the West Australian brokerage firm Hartleys
  • Originally announced back in July, Euroz is offering Hartley’s shareholders 3.3033304 new shares for each previously held Class A or Class E share
  • If successful, Euroz would issue and list around 33 million shares, giving Hartley’s a 17 per cent stake in the resulting issuer
  • The offer indicates a per share value of around $3.77 for Hartley shareholders, which is a 45 per cent premium on its net asset value at the end of the last financial year
  • The offer requires, among other conditions, a 90 per cent acceptance rate and will open on September 9 until October 9, 2020
  • Euroz closed 1.75 per cent in red for $1.12 per share

Financial services company Euroz (EZL) has successfully lodged its off-market takeover bid for the West Australian brokerage firm Hartleys.

Originally announced back in July, Euroz is offering Hartley’s shareholders 3.3033304 new shares for each previously held Class A or Class E shares. If successful, Euroz would issue and list around 33 million shares, representing around 17 per cent of its current float.

Based on Euroz’s recent trading range, the offer indicates a per share value of around $3.77, a 45 per cent premium on Hartley’s net asset value at the end of the last financial year.

In a further boon for shareholders, Euroz claims Hartleys investors will receive a significant cash distribution via a cash dividend, following a assessment of its surplus assets, implying short-term cash benefit alongside the all-share offer.

In his own public statement, Ian Parker, the current Chairman of Hartley’s, spoke on behalf of the board in encouraging shareholders to accept the offer, barring any superior bid.

At the time of the initial offer, Ian expounded the benefits of the takeover, stating the deal would 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.

Following the proposed takeover, Ian and Hartley’s Director Richard Simpson will join the Euroz board.

The offer requires, among other conditions, a 90 per cent acceptance rate and will open on September 9 until October 9, 2020.

Euroz closed 1.75 per cent in red for $1.12 per share.

EZL by the numbers
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