Publicly listed IOOF Holdings has made a bid to acquire all the shares of DKN Financial Group that it does not already own for $0.75 per share in cash.

IOOF holds currently 18.49 per cent in DKN. IOOF's bid represents a premium of about 47 per cent over DKN's last traded share price of 51 cents each.

"IOOF has a longstanding and mutually beneficial relationship with DKN, both as a shareholder and as a long term business partner," IOOF managing director Chris Kelaher said.

"However, we have over time come to the view that it makes strategic and commercial sense to explore the options for accelerating the growth of the DKN business under IOOF's larger, vertically integrated wealth management model," Kelaher said.

Kelaher has taken a leave of absence from his position of director of DKN and is playing no part in the consideration of the proposal.

The offer is to be effected by way of a scheme of arrangement, subject to conditions including the unanimous support of the DKN Board members capable of voting on the proposal.

"It's no surprise that there is recent industry sector interest in the quality assets of DKN which include the highly regarded Lonsdale dealer group, our equity positions in a number of wealth management practices and our platform distribution business," DKN chief executive Phil Butterworth said.

"In difficult market conditions we continue to attract quality practices and deliver consistently positive net flows into our platforms. Whilst discussions with IOOF are proceeding, the independent directors and management will ensure business as usual at DKN," he said.