Income Asset Management has sought a controlling stake in FIIG Securities through two offers which values the fixed-income product and service provider at about $27 million according to a report.
The Australian Financial Review says that FIIG has rejected the advances of $1 per share which was upped to $1.10 earlier this month.
Income Asset Management (ASX:IAM), formerly known as Cashwerkz, has a market capitalisation of around $37.8 million. It delivers financial product solutions in cash, bonds and funds management to wholesale and sophisticated clients and professional investors – as well as providing trustee services.
The privately owned FIIG Securities, which has around $5 billion in funds under advice, concentrates solely on fixed income products with former Credit Suisse executive Alex Welch as chief executive officer.
IAM recently announced that it had divested a 25% interest in Fortlake Asset Management for $3.54 million in cash, loan cancellation to Fortlake, and cancellation of performance rights issued to associates of Fortlake.
IAM has also announced that it has agreed to acquire the River Capital Liquid Credit Fund and Credit Mandate totalling $72 million AUM for an upfront cash payment of $350,000, representing River Capital’s transition costs, plus a deferred revenue sharing arrangement during Years 1 and 2 of IAM’s ownership, currently estimated at approximately $70,000 per annum and payable by way of IAM securities.
Accordingly, IAM will employ the River Capital credit investment team of Daniel Saldanha and Anthony Swan. They will add to IAM’s existing inhouse capabilities which currently oversees around $600 million in non-discretionary model bond portfolios.
