Australia’s second largest financial planning group, Professional Investment Services, in conjunction with its holding company Professional Investment Holdings (PIH), has today granted an exclusivity period to Aviva to complete due diligence with a view to acquiring 20 percent of the shares in PIH from each existing PIH shareholder.
Australia’s second largest financial planning group, Professional Investment Services, in conjunction with its holding company Professional Investment Holdings (PIH), has today granted an exclusivity period to Aviva to complete due diligence with a view to acquiring 20 percent of the shares in PIH from each existing PIH shareholder.
Completion of the acquisition by Aviva remains conditional on a number of matters, including the successful completion of Aviva's due diligence, Aviva plc board approval and agreeing to the form of the necessary documentation to effect the transaction. It is anticipated the transaction will be effected through a scheme of arrangement.
Robbie Bennetts, CEO of PIH, said: "We have been in an investigation and evaluation process for some time, proceeding along a dual path of evaluating both a listing and a trade sale. Today’s decision creates an opportunity for a combination of both with a strong partner in Aviva working with us."
"Our advisers & accountants have communicated to us that they value significantly the culture and independence of product choice they have enjoyed from the start of PIH some 8 years ago," said Mr Bennetts. "Aviva has been a strong business partner from our birth and understands our culture and our business model well. We see the extension of this relationship bringing both organisations closer together, to develop new product offerings and enhancing the value propositions of both."
Allan Griffiths, CEO Aviva, said: "We are delighted to be given the opportunity to proceed on an exclusive basis to conduct due diligence. We see PIH as more than just a financial planning business. Its core capability is distribution and I can see that, if the transaction proceeds, both organisations will add significant value to each other as they have complementary skills.
"We are looking forward to working with Robbie and his executive team to not only ensure that it is business as usual but also bring a range of expertise and opportunities to assist PIH along its ongoing journey to becoming Australia’s premier financial planning business."
Mr Bennetts stated that: "It was PIH's objective to grow new business by 40% in 2005. After a six month process of evaluation and consideration of all opportunities, we are looking forward to the next two weeks launching the Back to Business program, delivering to the advisors and accountants a company update along with new ideas and plans for enhancing their businesses in 2005."
For further information please contact:
Robbie Bennetts
CEO Professional Investment Holdings
(07) 5574 0244
Allan Griffiths
Chief Executive
Aviva Australia
or
Simon Morgan
Group General Manager Public Affairs
Aviva Australia
(03) 9829 8989
Notes to editors:
- Aviva Australia is a group of two specialist financial services companies: Navigator and Norwich Union Life Australia Ltd. Portfolio Partners, the Australian funds management arm, is part of Aviva plc. Through these companies we provide products and services in the areas of wealth creation and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Aviva Australia is part of Aviva plc, the world’s fifth largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$74 billion, and more than A$592 billion of assets under management (as at 17 January 2005). The group has more than 51,000 employees and 30 million customers worldwide.
- The information in this document reflects Norwich Union Life Australia Limited's (NULAL) and NULIS Nominees (Australia) Limited's ('NULIS') understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person and it is not a substitute for professional advice. Applications to invest in a financial product issued by Aviva, or any of its related entities, must be made by completing the application form attached to the applicable Product Disclosure Statement ("PDS"). A PDS is available from Aviva or your financial adviser. Before making an investment decision on the basis of the information above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the information is appropriate in the light of their particular investment needs, objectives and financial circumstances. Aviva does not receive any remuneration in relation to the provision of information available from this press release which is of a general nature only.