Risk Company Updates

360 Capital proposes takeover of Evans Dixon

360 Capital Group has proposed a takeover of Evans Dixon in an off-market takeover, taking its 19.55 per cent stake to full ownership. The offer price has a value of 61 cents per share, a 142 per cent premium on Evans Dixon’s net tangible assets and a 54 per cent premium to its grading price after ASIC announced legal action against Dixon Advisory and Superannuation Services. The Evans Dixon closing share price was 45 cents on September 4.

ASIC alleges Dixon Advisory and Superannuation Services breached the best interests duty obligations relating to financial advice to retail investors who were in the US Masters Residential Property Fund. Alan Dixon, the former chief executive, stepped aside to focus on the property fund, but then went on an extended leave of absence for personal reasons on August 1. The property fund returned -76 per cent in the year to March-end. Evans Dixon is in the process of rebranding to E&P Financial Group.

Ares makes bid for AMP

Ares Management has made an offer to take over 100 per cent of AMP shares, as announced to the ASX. An indicative, non-binding, conditional proposal has been made by Ares management to acquire 100 per cent of AMP shares by scheme of arrangement, without declaring the value. Discussions are at a very early stage.

HUB24 divests Paragem, looks to Xplore

HUB24 is investigating buying Xplore Wealth for $60 million in a combination of cash and scrip consideration. Shareholders unanimously agreed to the sale. The board has recommended that shareholders approve the purchase. HUB24 is selling off its financial advice licensee, Paragem. HUB24 will become a shareholder in Easton Investments, with the platform provider proposing a subscription for new shares in Easton for $14 million cash and the divestment of Paragem to Easton for $4 million in Easton shares. After a share buyback, HUB24 will own 40 per cent of Easton.