- Income Asset Management (IAM) owns a 25 per cent stake in Brisbane-based Tactical Global Management
- TGM is merging with a Sydney-based company called Alpha Vista
- IAM’s stake has been in place since 2021; upon completion, it will hold 2.5 per cent of the new entity
- IAM’s interest in the merged entity is expected to be worth more than $3 million
- Shares last traded at 12 cents
Income Asset Management (IAM) has announced a merger between privately held Tactical Global Management Limited (TGM) and Alpha Vista Financial Services (AVFS).
IAM holds a 25 per cent stake in TGM. Alpha is headquartered in Sydney, while Tactical is based in Queensland.
IAM Group acquired its 25 per cent stake in TGM in June 2021.
TGM recently unveiled its merger with Alpha, with which it has collaborated for two years to co-develop products using AI technology for managing equity holdings and general protections.
Tactical shareholders will receive a 10 per cent equity stake in the merged entity, with IAM retaining 2.5 per cent.
As part of the agreement, IAM has relinquished the majority of its rights to additional equity and cash bonuses in exchange for Tactical shareholders agreeing to the cancellation of 15 million performance rights issued to them as part of the 2021 investment in Tactical.
Upon completion, IAM’s stake will represent a value of $3.125 million, a figure IAM notes is in line with the book value of the initial investment.
A $5 million placement into Alpha Vista further solidifies the deal.
IAM posted its third consecutive positive quarter back in July. In May of this year, it acquired two smaller companies for $350,000.
IAM shares last traded at 12 cents.