The Directors of Diversa Limited (DVA) are pleased to announce that Diversa has entered into conditional agreements to acquire the investment and administration management rights to the Managed Australian Retirement Fund (MARF), a retail superannuation master trust managed by Managed Financial Strategy Ltd and Managed Financial Services Pty Ltd. The maximum amount payable for the proposed acquisition is $1,500,000 which is to be paid in a combination of cash and ordinary shares in Diversa Limited, with $1,125,000 payable on completion of the acquisition and the balance payable 12 months after completion. The balance payable may be reduced if the level of funds under management by MARF reduces during the first year of management. The proposed acquisition will be funded from existing cash reserves. The proposed acquisition will be the Diversa group’s second acquisition of a superannuation management business and is consistent with Diversa’s strategy of growing an emerging wealth management company through fund aggregation.
Following completion of the proposed acquisition, there will be no significant changes in the management of MARF as Diversa will enter into a services agreement with the Managed Group to provide various administrative services to maintain continuity with members. The business being acquired had adjusted earnings before interest and tax for the financial year ended 30 June 2009 of approximately $397,000. The acquisition of the MARF business by Diversa is expected to deliver a positive impact on Diversa earnings. Diversa has entered into agreements for the purchases which are subject to numerous conditions including, amongst other things, due diligence and the trustee of the fund consenting to the transaction. The shares to be issued in Diversa will be issued at the weighted average market price over the five days prior to the relevant issue date. The Managed Group has agreed that the shares issued to it as part of the proposed acquisition will be subject to voluntary escrow restrictions for a period of 12 months from completion of the proposed acquisition.
This acquisition complements Diversa’s initial acquisition of the Super Promoters business in March 2009 and is consistent with Diversa’s strategy of developing an emerging wealth management company. The Directors are pleased that the Managed Group will maintain an active involvement with the MARF membership and welcome them as shareholders in Diversa.
Diversa Ltd (DVA) is an emerging wealth management company positioned to meet the needs of Australia’s rapidly changing superannuation and funds management sector. Diversa looks to respond to evolving Government and regulatory initiatives designed to increase the level of transparency, and the quality of products and services, provided by superannuation funds and funds management organisations.