Anyone see the Australian Financial Review regarding a potential takeover of CVW. The stock hasn't moved much so wanted to get your thoughts on this?
-------------------------------------------------------------------------------------------
Japanese insurer Sony Life is hoping to get a positive read on ClearView Wealth's full-year accounts before moving ahead with a bid for the local advice and life insurance company.
Street Talk understands Sony's present intentions, pending a solid set of fiscal year earnings, are to kick off a takeover in the third quarter.
It's not a small bite either. After a strong rally in ClearView's shares late last year the company now has a $933 million market capitalisation.
A tilt by Sony in the third quarter would mark almost a year since the company acquired an initial 14.9 per cent stake in ClearView from private equity firm Crescent Capital Partners and its co-investors.
ClearView is said to have held a scheduled board meeting last week and Sony's representative Satoshi Wakuya was in Sydney to attend in person.
He is a general manager and Sony's head of business development.
Interestingly, ClearView's shares closed at $1.415 on Friday, below the $1.48 per share paid by Sony to acquire its foothold. (That reflected a 23 per cent premium at the time of the 2016 transaction and no doubt any further offer would also include a takeover buffer).
ClearView has Morgan Stanley in its corner to provide strategic advice while Sony is taking counsel from JPMorgan, as revealed by this column.
Sony's initial foray into Australia came via a two-tiered transaction with Crescent and its partners. It included a call option over Sony's stake if the company did not lob a bid for ClearView within 18 months.
If Sony opts not to make a bid, the deed can be exercised by Crescent so that the Japanese firm sells into another offer.
The Crescent grouping still owns circa 38 per cent of ClearView, meaning a Sony offer for that stake would trigger a bid for the target in its entirety.
Sony Life is owned by Sony Financial Holdings which is listed on the Tokyo Stock Exchange.
CVW Price at posting:
$1.45 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)