Roll up, roll up: Grosvenor on the growth trail
Two more New Zealand financial planning firms have sold a stake to Tranzact Financial Services, the listed Australian group majority-owned by Grosvenor.
Tuesday, July 24th 2007, 5:08AM
Van Der Wilt has three advisers while two planners work in the Skerrett business. Tranzact said it would help Skerrett seek out merger opportunities in the Southland region.
In a statement to the ASX Tranzact said it would achieve "growth and improvements in profitability by partnering with these practices".
"Tranzact benefits through its investment directly as well as its ability to offer more of its support services," the statement said.
According to Tranzact both recent acquisitions would offer a minimum 15% pre-tax return to the group.
The firm also said it was in talks with "a significant number" of other financial planning businesses to make further strategic acquisitions.
"The New Zealand market represents a major area of opportunity for Tranzact's 'Partnership for Growth' strategy," Tranzact said. "New Zealand is expected to become a high growth market, with the recently announced changes by the New Zealand government concerning KiwiSaver and the phasing in of compulsory matching employer superannuation contributions providing a major growth impetus."
In May Tranzact raised about A$8 million in a rights issue setting aside A$3 million for its financial planning business acquisition strategy.
According to Grosvenor, over 120 financial advisers in New Zealand use its platform services.
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