Bell Financial Group Ltd (ASX:BFG) Enters Agreement to Acquire Selfwealth Ltd (ASX:SWF)

Acquisition Overview

Bell Financial Group Ltd (ASX:BFG) has entered into a Scheme Implementation Deed to acquire 100% of Selfwealth Ltd (ASX:SWF) for 25 cents per share. This agreement represents an implied equity value of approximately $57.7 million for Selfwealth. Shareholders of Selfwealth can opt to receive either cash consideration, scrip from BFG, or a combination of both, with the scrip capped at 50% of the total consideration.

Strategic Benefits

The acquisition is set to enhance BFG’s online broking platform by adding approximately 130,000 active portfolios. It will also significantly increase BFG’s sponsored holdings by $11 billion to a total of $94 billion. The transaction is expected to be materially accretive to BFG’s earnings per share post-integration, benefiting shareholders through increased scale and revenue synergies.

CEO Comments

Bell Financial Group Chairman Brian Wilson AO stated, “We look forward to working with Selfwealth to ensure a smooth integration of our two businesses with minimal client disruption. Our intention is to maintain the Selfwealth brand and to further develop the client value proposition which we expect will result in ongoing growth.”

Approval Process

The Selfwealth Board unanimously recommends that its shareholders vote in favour of the Scheme. Each director intends to vote their shares in support, pending an independent expert’s conclusion that it is in the best interests of Selfwealth shareholders. The Scheme requires approval from Selfwealth shareholders, among other customary conditions.

Next Steps

A Scheme meeting for Selfwealth shareholders is anticipated to occur in March 2025. Ashurst has been appointed as the legal adviser for BFG for this transaction.

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Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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