The Perth-based Plan B has moved a step closer to outright ownership of the MyAdviser group earlier than expected, after yesterday lifting its holding to 93 per cent.
A remaining 7 per cent stake in MyAdviser remains in the hands of that company’s managing director, Philippa Sheehan, and will be acquired by Plan B subject to MyAdviser meeting certain performance hurdles.
The acquisition of the remaining stake values MyAdviser at about $7 million. The firm has 134 authorised representatives and about $1 billion of funds under advice.
The increased stake in MyAdviser is part of the Plan B’s ongoing strategy to increase its presence on the east coast. The managing director of Plan B, Andrew Black, says lifting the company’s stake in MyAdviser to 93 per cent from 33 per cent previously would enable it to drive cost savings and efficiencies as MyAdviser’s majority shareholder.
He says Sheehan’s performance hurdles relate to the profitability of MyAdviser over “a couple of year period”.
The latest tranche of the transaction also signals the final involvement of Michael Summers in the business he founded 16 years ago. In a statement, Plan B said that Summers is “pleased the company is in the capable hands of the next generation of managers to carry it forward”.
“He will work with the business for a transitional period and will continue to be involved in industry associations,” the statement reported.
Summers has previously told Professional Planner that he will continue to work with Plan B in a consultative capacity.
Plan B has operations in both Australia and New Zealand, and is listed on the ASX. As at December 31, 2011, Plan B had funds under management and advice totalling $2.2 billion.
