Wilson HTM Investment Group will retain its shareholding in its $10.5-billion investment management business after continued weakened markets hampered potential sale plans.
The listed financial services firm informed the market yesterday of its decision to hold onto its 79.3 per cent interest in Pinnacle Investment Management. It also noted Pinnacle would retain its interests in all six of its boutique fund managers.
"The conclusion of the formal process is due to the deterioration in market conditions since March 2012 and an assessment that a transaction could not be concluded at this time on sufficiently attractive terms for [Wilson] shareholders," the company said in a statement to the Australian Securities Exchange.
"[Wilson] remains willing to engage with strategic investors and, as a result, an ongoing informal process will continue."
In March, Wilson announced it had shelved its October 2011 plans to find a strategic partner for Pinnacle and would instead explore third-party interest for individual elements of the business.
The company also used its update to advise shareholders of expected second half losses and cost considerations for the group, including the potential of delisting.
"Notwithstanding that the group's cost base has been reducing, these market-driven events are expected to result in a second half loss after tax of $3.7 million to $4.7 million, which exceeds the first half after-tax loss," it said.
"The likely full-year after-tax loss is in the range of $7 million to $8 million."
In response to market conditions, Wilson is continuing to work through cost reduction measures across the business.
"This work includes consideration of the costs and benefits of the group remaining listed," it said.
However, despite cost considerations, Wilson said it held no corporate debt and continued to recruit in the areas of wealth management and advice.
Last week, former JBWere managing director Brad Gale joined Wilson to lead its private wealth division.
Gale takes the wealth reigns from Wilson managing director Andrew Coppin, who held the position prior to his company leadership appointment in October last year.
