COG Financial Services throws hat in the ring for Diverger

afr.com:

Plenty of action at Diverger, the ASX-listed licensee services group which had already agreed to be acquired by rival financial services outfit, Count Limited. That deal was for around $1.14 per share in cash and scrip.

Now COG Financial Services, an asset finance broking group, has lobbed a rival offer, Street Talk understands. The offer was made last week and is at a premium to County’s. Sources said the bid was at around $1.40 per share – half cash, half scrip. Including options held by major shareholder HUB24 and performance rights, this values Diverger’s equity at $56.4 million.

Diverger chief executive Nathan Jacobsen. Janie Barrett

Diverger declined to comment, although a spokesman said: “We have not determined we’ve received any superior offers capable of acceptance.”

Count entered a scheme implementation agreement to purchase Diverger at a 31 per cent premium to its 30-day volume-weighted average price of 87¢ in late September after getting the thumbs up from the board and HUB24.

Count’s offer stands at $45.3 million, comprising 1.38 Count shares plus $0.367 in cash per Diverger share.

Investment and superannuation platform HUB24, which owns around 31.5 per cent of Diverger, issued a statement of support for the transaction at the time the Count scheme was announced and signalled its intention to vote in favour of the transaction without a superior proposal.

The question is whether COG’s bid will be enough to get HUB24, a strategic player in the sector, across the line.

Diverger provides services to financial advisers and accountants, including back office support to AFSL licensees, dealer groups and the like. It has a suite of brands under its wing including GPS Wealth, Merit Wealth, SMSF Expert, Paragem and