Ords changes hands
Ord Minnett staff have sold their shares to AWM, but will have to wait before cashing in.
Staff at broking firm Ord Minnett have decided to sell their shares in the company to the listed firm Australian Wealth Management, giving them an avenue to cash in their holdings over the next three years.
The 70 per cent stake held by the 200 or so staff and directors is being swapped for $84 million of AWM shares, which are being issued at a price of $1.75 each, level with their last trading price.
The deal values Ords at $120 million, or 11 times forecast net profit, including some $25 million it holds in cash.
JP Morgan retains a 30 per cent stake in Ords, and has a pre-emptive right over the 70 per cent should AWM be taken over by another party.
The biggest shareholders from the Ords team are thought to be chairman Russell Aboud and managing director Karl Morris. Their combined stake has been estimated to have been as high as 20 to 25 per cent at one stafe, but this could not be confirmed.
Ord Minnett staff will have to wait up to three years before being able to share their holdings, with the shares to be issued by AWM to be held in escrow, with one third vesting annually. Their shares in AWM amount to less than 10 per cent of the company.
Ord Minnett has been pursued by a variety of financial institutions since it was revealed it was in talks with St George back in 2006.
AWM used Grant Samuel and legal firm Blake Dawson to advise on the transaction, which has been in discussion for some 18 months, since the deal with St George fell through. JP Morgan and Ords used their own internal resources.
The 70 per cent stake held by the 200 or so staff and directors is being swapped for $84 million of AWM shares, which are being issued at a price of $1.75 each, level with their last trading price.
The deal values Ords at $120 million, or 11 times forecast net profit, including some $25 million it holds in cash.
JP Morgan retains a 30 per cent stake in Ords, and has a pre-emptive right over the 70 per cent should AWM be taken over by another party.
The biggest shareholders from the Ords team are thought to be chairman Russell Aboud and managing director Karl Morris. Their combined stake has been estimated to have been as high as 20 to 25 per cent at one stafe, but this could not be confirmed.
Ord Minnett staff will have to wait up to three years before being able to share their holdings, with the shares to be issued by AWM to be held in escrow, with one third vesting annually. Their shares in AWM amount to less than 10 per cent of the company.
Ord Minnett has been pursued by a variety of financial institutions since it was revealed it was in talks with St George back in 2006.
AWM used Grant Samuel and legal firm Blake Dawson to advise on the transaction, which has been in discussion for some 18 months, since the deal with St George fell through. JP Morgan and Ords used their own internal resources.
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