ClearView, controlled by GPG, urges shareholders to reject A$220M offer from Crescent
Aug. 20 (BusinessDesk) - ClearView Wealth, the financial services company that is 48 percent owned by Guinness Peat
Group, has advised shareholders to reject a A$220 million offer from buyout firm Crescent Capital Partners that would
install former GPG director Gary Weiss as chairman.
ClearView’s directors said the offer “is inadequate and substantially undervalues the company.” It urged shareholders to
reject the 50 Australian cents-a-share offer after an independent appraisal from KPMG Corporate Finance value the
company at between 68 cents and 74 cents a share.
The proposal was also highly opportunistic, highly conditional and uncertain, ClearView said. Director John Murphy
stepped aside for the deliberations as he is a director and unit holder of entities associated with the bidding vehicle,
CCP BidCo.
“ClearView is well advanced in its corporate development plans and after significant capital investment and management
focus is now starting to reap the benefits of its strategy of increasing its share of the Australian life insurance and
wealth management markets,” the company said in the statement.
“The offer appears deliberately timed to take advantage of ClearView having laid the foundation for growth but only
beginning to realise the full financial benefits,” it said.
ClearView shares last traded at 60 Australian cents on the ASX, valuing the company at A$267 million. The shares have
gained 28 percent in the past three months.
GPG already spurned the offer last month as "wholly inadequate".
Crescent has built up a 12 percent stake in ClearView from various put and call options with existing shareholders
including Ariadne Australia, which counts former GPG director Weiss as an executive director. If Crescent was successful
in securing a full takeover, Weiss would be put forward to chair ClearView.
Shares in Guinness Peat Group were unchanged at 51 cents on the NZX.
(BusinessDesk)