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Wealth management firm Prime Financial Group has entered into arrangements to dramatically increase its stake in a leading Melbourne accounting and advisory firm.
According to an ASX release issued this morning, Prime has arranged to increase its stake in MPR Group from 40 per cent to approximately 93 per cent.
Prime has increased its holding through the issue of new shares by MPR and the acquisition of existing shares from MPR managing director Matthew Murphy. It is expected that completion of the arrangements will be effected and implemented by early next week.
Prime confirmed that Mr Murphy will continue in his role as managing director of MPR, but will also take on additional responsibilities, including joining Prime’s leadership team.
Prime managing director and CEO Simon Madder welcomed Mr Murphy to the broader Prime team.
“MPR is a key partner and investment for Prime, and Matthew is an integral part of that business and its future growth ambitions” he said.
“With the injection of capital into MPR we have a growth target for double-digit revenue growth in the coming years.”
Mr Madder noted that Prime’s ongoing equity interest in MPR will vary according to acquisition activity and the funding mechanisms utilised.
“Prime strongly believes in the alignment of ongoing interests though equity,” he said.
As part of the transaction Mr Murphy will receive $1.35 million cash, paid over 12 months, plus 13.5 million Prime shares. This will make Mr Murphy a significant shareholder in Prime, with those shares being escrowed, one third for one year, one third for two years and one third for three years.
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