Multi-service tax, accounting firm to list on ASX

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M&A | 22 December 2016 | Jack Derwin

M&A

22 December 2016

By: Jack Derwin

2017 will see the first multi-disciplinary professional services conglomerate list on the ASX, after a Melbourne-based firm entered into an agreement with a Chinese equity firm.

Financial, accounting and legal services firm TST Partners has announced it will launch on the ASX by way of a reverse takeover with Shanghai-based private equity firm Jingyi Group.

“Currently, I believe the top-tier legal and accounting firms are over-charging clients due to their enormous operating costs and a lack of competition, whilst the smaller firms may not possess the resources or technical expertise to adequately service these clients,” TST Partners group managing director of partners Francis Gu said.

“We plan to fill the gap in the market that exists between the top-tier and smaller firms, especially in respect to the value of its service offering to overseas clients. TST Partners will position itself to provide highly technical financial and legal services without the top-tier price tag,” he added.

As part of the agreement, Jingyi Group will acquire the majority shareholding interests of a current ASX company, before TST enters into a scrip-for-scrip transaction with the company to become a listed entity.

Announcing that the firms were targeting an early 2017 listing, Mr Gu said TST Partners would pursue an expansionary agenda acquiring accounting and legal services in Melbourne and other Australian capitals.

“The proposed listing of TST Partners will also allow us to raise capital for our ambitious expansion plans,” Mr Gu said.

Jingyi Group managing director Xianyou Kang said the venture was a reflection of Asian expansion into Australia.

“We see the listing of TST Partners as an opportunity to take a significant lead in providing the ever-growing need for financial and legal services by Asian investors and corporations looking to invest in Australia for the foreseeable future,” Mr Kang said.

Mr Kang said that given Chinese investors have traditionally focused on investing in Australian real estate, the country’s professional services had been overlooked.

“Our Australian business investment will not only provide clients with financial and legal services, but also exposure to investment opportunities through our asset management business,” he said.