The board of Clearview Wealth (Clearview) has advised its shareholders not to take action in response to Crescent Capital Partner Management's $220 million takeover bid for the group until it has completed a full assessment of the offer.
Clearview chairman Ray Kellerman informed the market yesterday that the company board is in the process of considering the details of Crescent Capital's conditional offer.
"Further information will be provided to the market and shareholders once the board has completed a careful assessment of the offer," Kellerman said in a statement to the Australian Securities Exchange.
"At this stage we are advising shareholders to take no action in respect of their shares in Clearview."
Clearview has engaged the services of Emerald Partners to advise them in relation to the offer, the statement said.
Meanwhile, Clearview's largest shareholder Guinness Peat Group (GPG) has labelled the takeover bid as being "wholly inadequate".
GPG, who owns 47.8 per cent of the issued capital in Clearview, made the comment in its own statement to the market yesterday.
"In GPG's opinion, the price offered represents a substantial discount to the fair value of Clearview Wealth Limited and is wholly inadequate," GPG company secretary Chris Healy said in the statement.
Crescent Capital informed the market yesterday of its intention to make an all-cash offer to purchase the ordinary shares in Clearview at a price of 50 cents per share.
Crescent Capital managing partner Michael Alscher said the offer provides Clearview shareholders the opportunities to sell some or all of their holdings "at a premium in a company that has low historical trading volumes and liquidity".
The offer will be funded through arrangements with Crescent advised parties, Investec Bank Australia and other counterparties, a Crescent Capital statement said.
Crescent Capital's offer comes just days after Clearview Wealth managing director Simon Swanson said the company expects to further expand its adviser base following a 37 per cent increase in its adviser numbers from 57 to 78 in the first half of 2012.
