PSG Konsult acquires Advance Wealth Management for R97 Million

29 August 2006 PSG Konsult

PSG Konsult, the countrys leading independent financial planning and stockbroking company, has today announced the acquisition of Advance Wealth Management, a financial services company with nine offices countrywide, for R97 million. The transaction is subject to approval by the Competition Commission.

Advance Wealth Management had its origin in the late eighties as the financial services and investments division of the well known accounting firm PriceWaterhouseCoopers, after which it became an independent and professional financial services provider in 1998.

The acquisition of Advance Wealth Management is the third successful transaction of its kind by PSG Konsult in just more than twelve months. This transaction follows PSG Konsults acquisition of the short-term insurance arm of Vleissentraal in June, followed by that of Multinet, a country wide short-term insurance group, in January this year.

PSG Konsults CEO, Willem Theron, said that the alliance with Advance Wealth Management is held in high esteem and that PSG Konsult believes that clients will benefit greatly from the acquisition, especially with regard to the broadening and supplementation of professional financial expertise.

The acquisition will add 40 professional financial planning experts with a strong support base and financial planning resources in nine offices to grow PSG Konsults country-wide network of 156 offices to 165. The transaction will be financed through own funds and the issuing of new PSG Konsult shares.

Advance Wealth Managements R4,5 billion assets under management will bring PSG Konsults total assets under administration to R26,8 billion. PSG Konsults client base will grow to about 96 000 clients, whilst the headline earnings per share will increase by an estimated 8.3% annually. In return, Advance Wealth Managements client base will have access to PSG Konsults stockbroking and short-term insurance services.

"The joining of the two companies creates a leading financial planning company with Advance Wealth Management fitting in perfectly with PSG Konsults business activities, which consists of financial planning and focused investment solutions.

"Of equal importance is the fact that Advance Wealths CEO, Wayne Waldeck, will join the PSG Konsult board," Theron said. The existing management team of Advance Wealth Management will be retained.

Waldeck said that continuity in the delivery of professional financial services will be strictly maintained. Advance Wealth Managements focus on self-developed investment options can now also be supplemented with PSG Konsults services.

"The consolidation of the financial planning industry in the midst of changing legislation is inevitable. Service delivery requires a more sophisticated and durable support structure, as well as access to diverse services and resources to offer clients a truly holistic financial solution."

"We believe that the newly formed group will deliver service of even higher quality to clients whilst retaining independence and objectivity," Waldeck said.

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