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Findlay in takeover bid for Aequs

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Stockbroking firm Findlay has made a takeover bid for fellow broking group Aequs Capital.

Findlay Securities looks set to takeover fellow broking group Aequs Capital (Aequs), after company directors recommended shareholders accept the firm's offer.

The listed stockbroking firm made a bid for Aequs early yesterday.

"The proposed merger with Aequs will complement Findlay's business and clearly signals its strategy to play a leading role in the future consolidation of the Australian stockbroking industry," Findlay executive chairman Otto Buttula said.

"We look forward to a positive response from all Aequs stakeholders in regard to our offer and we are committed to adopting a measured, inclusive and partnership approach in integrating both organisations."

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Under the terms of the takeover bid, Findlay will offer each Aequs shareholder 11 new Findlay shares for every four Aequs shares.

"The directors of Aequs, who are major shareholders of Aequs, have sold part of their shareholdings to enable Findlay to gain a cornerstone shareholding in Aequs of 19.9 per cent. They intend to accept the offer in respect to their remaining shares in Aequs, in the absence of a superior offer," Aequs chairman Robert Spano said.

"The combination of Findlay and Aequs will enhance the capability of both companies, to meet proposed new ASX capital requirements for stockbrokers wishing to perform their own clearing function," Spano said.

The offer is expected to open on November 26, 2008 and close on December 30, 2008.