Centrepoint Alliance has entered into a conditional agreement with Aviva Asia Holdings for the sale of its interest in Singaporean advisory group Professional Investment Advisory Services (PIAS).
The agreement between Centrepoint subsidiary Fifth Floor and Aviva Asia will involve the sale of Fifth Floor's 81 per cent of issued capital in Singaporean subsidiary Professional Advisory Holdings (PAH).
PIAS is the wholly-owned subsidiary of PAH, which has more than 300 licensed financial advisers on its books.
Centrepoint managing director Tony Robinson said the decision to sell its interest in PIAS stemmed from the Australian company's difficulty in contributing to the management and investment needs of the business.
"While PIAS is one of the most successful investor adviser services businesses in Singapore, it is difficult for us to contribute to its management and meet its investment needs going forward," Robinson said in a statement to the Australian Securities Exchange today.
"We believe the transaction with Aviva gives PIAS a shareholder who will help it achieve its growth aspirations, and provides [Centrepoint] shareholders with an opportunity to remove a significant [Centrepoint] shareholding from the market and receive a reasonable consideration for the business."
The consideration offered by Aviva Asia for the purchase of Centrepoint's interest in PIAS is more than 7.7 million Centrepoint shares and about $280,000 in settlement of any loan balances between PIAS and Centrepoint.
Under the terms of the deal, Centrepoint will regain its 7.6 per cent shareholding from Aviva.
"The consideration for the sale of the PAH shares is to be satisfied by Aviva Asia procuring its [United Kingdom]-related company, Aviva Overseas Holdings Limited, to enter into a buy-back agreement with [Centrepoint] under which [Aviva Overseas] agrees to sell and transfer to [Centrepoint] its 7.6 per cent shareholding in [Centrepoint]," Centrepoint said.
Commenting on the agreement, Aviva Singapore chief executive Nishit Majmudar said: "We are excited about the opportunity to be involved with PIAS and look forward to working with PIAS advisers in facilitating growth opportunities for the company."
Professional Investment Holdings (PIH), the former parent company of dealer group Professional Investment Services, established its Singapore presence in 2001.
In December 2010, PIH announced it had completed its merger with Centrepoint.
Centrepoint plans to seek shareholder approval for the buy-back transaction at a general meeting in October.
If approved, the company expects the transaction to be completed by 31 October.
