Debt relief for WHK

Accounting and financial planning company WHK Group has reduced its debt burden in a deal with Macquarie Private Wealth.

Through a "strategic partnership" with the silver doughnut, WHK has issued 30 million convertible notes to Macquarie at $1 each, which equates to approximately 10 per cent of WHK's issued capital, if converted. Upon conversion, Macquarie would become WHK's biggest shareholder and would be entitled to nominate one director to the WHK board.

WHK's recently appointed head of financial services, John Cowan, will be overseeing the Macquarie-WHK deal, which will also involve the sharing of resources and products.

The deal will reduce WHK's bank borrowings and WHK says it will also lower its clubbed facility limit to $120 million from $150 million.

The deal follows on from WHK's $11 million sale of its 30 per cent interest in Next Financial to stockbroker Wilson HTM two weeks ago (see Consolidation on the cards, March 2). Wilson is to pay WHK $7.4 million cash at settlement around April 1 and $3.6 million in cash or shares around July 31 next year.

In another sign of industry consolidation, IOOF and its partner-to-be Australian Wealth Management recently acquired the Australian businesses of South Africa's Old Mutual: Skandia and Intech. MMC Contrarian last week signed an agreement to purchase Tolhurst's advisory business Community & Corporate Financial Services, Tolhurst having already sold its broking business to Patersons Securities.

Also last week, Champ Private Equity purchased a majority stake in unlisted financial planning business Centric Wealth, of which Malcolm and Lucy Turnbull have been significant shareholders (see Champ's financial plan, March 3).