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Praemium (ASX:PPS) - CEO, Michael Ohanessian - The Market Herald
CEO, Michael Ohanessian
Source: Finance News Network
  • Investment manager Praemium (PPS) will move to compulsorily purchase the remaining shares in Powerwrap (PWL)
  • In July, Praemium made an offer to purchase Powerwrap for $55.6 million. A couple of months later, the company announced the deal was unconditional
  • The offer closed yesterday, September 21 — at the time, Praemium had a 94.16 per cent stake in Powerwrap
  • The company will now proceed to acquire the remaining shares under the compulsory acquisition provision
  • Trading in Powerwrap shares will be suspended five days after the ASX receives a copy of Praemium's compulsory acquisition
  • On the market this afternoon, Praemium is down 3.77 per cent and is trading for 51 cents per share

Investment manager Praemium (PPS) will move to compulsorily purchase the remaining shares in Powerwrap (PWL).

Powerwrap is one of Australia's leading wealth management platforms and offers investment, administration and share services to high net worth investors.

In July, Praemium made an offer to purchase Powerwrap for $55.6 million. A couple of months later, the company announced the deal was unconditional.

This offer valued Powerwraps shares at approximately 26.44 cents per share, with shareholders receiving 7.5 cents per share in cash. Additionally, shareholders will receive one Praemium share for every two Powerwrap shares.

The offer closed yesterday, September 21 — at the time, Praemium had a 94.16 per cent stake in Powerwrap. The company will now proceed to acquire the remaining shares under the compulsory acquisition provision of the Corporations Act 2001.

The compulsory acquisition will be on the same terms as the offer and will take between four to six weeks.

Trading in Powerwrap shares will be suspended five days after the ASX receives a copy of Praemium's compulsory acquisition.

The offer was favoured by the Powerwrap Board, which encouraged shareholders to vote in favour of the deal.

The companies will now merge and become one of Australia's largest independent specialist platform providers on a combined funds under administration (FUA) basis.

On the market this afternoon, Praemium is down 3.77 per cent and is trading for 51 cents per share at 3:13 pm AEST.


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