Iwl Bids $10.9m To Take Over Online Broker Sanford
Sydney Morning Herald
Thursday January 16, 2003
IWL, formerly InvestorWeb, has launched a $10.9 million takeover bid for online broker Sanford, in which it already holds a 19.9 per cent stake.
Under the off-market cash and scrip bid, Sanford shareholders can accept either one new IWL share or 19c cash for each Sanford share they own, or a combination of the two offers.
The cash version of the bid values the part of Sanford not already owned by IWL at $8.73 million.
Shares in Perth-based Sanford rose 4.5c to 20c when news of the takeover bid was released, while IWL shares eased 1.5c to 20.5c.
At yesterday's closing prices, the scrip alternative of IWL's bid valued the entire Sanford business at $11.76 million.
IWL chief executive Otto Buttula said acquiring Sanford would represent a continuation of IWL's strategy to deliver more tools to its growing client base of about 5800 financial planners.
``Completion of this initiative will result in a functionally richer desktop for financial advisers, with greater control of work flows, while also significantly broadening IWL's product and marketplace," Mr Buttula said.
``[There is also] an opportunity to move into the provision of services to share investors as well as the Australian stockbroking community."
Sanford's online broking business has about 40,000 clients.
The firm also operates National Australia Bank's National Online share trading platform.
Mr Buttula said Sanford's front-end information, transactions and back-office settlement and reporting technology for brokers would fit well with IWL's existing operations.
IWL recently ramped up its financial planning software packages and has a number of systems providing equities research and funds management data.
Sanford has advised its shareholders not to act yet. IWL's offer is expected to close on March 21.
© 2003 Sydney Morning Herald
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