HFA is still set fair to acquire US fund manger Lighthouse, according to the group's chief executive.
HFA Holdings plans to buy US fund of absolute return funds manager Lighthouse Partners is still on course, according to the group's chief executive Peter Jensen.
Recent market volatility had not derailed the groups planned acquisition completion date of January 2008 Jensen said following the release of the groups 2006/07 full year results.
"As per our previous announcement both HFA and Lighthouse share a common goal and ambition for what becomes globally possible by combining our respective businesses and we are both committed to executing the merger and our expected completion date at this stage remains unchanged," Jensen said.
On July 24 HFA announced a merger implementation agreement (MIA) Lighthouse Partners, which would see HFA eventually acquire Lighthouse for US$348.5 million in cash and 134.67 million HFA shares.
Lighthouse is 24.9 per cent owned by US-based SunTrust Banks and 75.1 per cent owned by Lighthouse Management. SunTrust will receive US$155.0 million in cash for its interest in Lighthouse.
Shares issued to Lighthouse Management by HFA will be subject to escrow and will be released in thirds at June 30 2008, 31 December 2008 and June 30 2009.
If HFA is unsuccessful in raising money to fund the purchase it will be penalised US$6 million.
HFA yesterday reported a Net Profit after Tax (NPAT) of $20.3 million, up 288 per cent on the previous corresponding period, while normalised profit, excluding one-offs, rose 157 per cent.
Assets under management gained 47.5 per cent to $3.88 billion, while funds under management (FUM) were up 46.8 per cent to $2.29 billion.
According to Jensen the result reflected continued fund inflow to HFA's core absolute return funds coupled with two "highly successful" structured product capital raisings during the year.
HFA shares ended up 10 cents to $2.18 or 4.8 per cent.
Retirees face the risk of running out of money. We asked Macquarie Funds Group's head of longevity risk solutions Andrew Robertson how this can be avoided.... Watch»
Many in the industry would have been bogged down in submissions given the plethora of government reviews. Next year it will be the government's turn to act on the reviews. ... read more »
Home delivered!
Daily news, weekday mornings
Get the day's news delivered direct to your inbox. Register here (it's free!) and choose 'yes' to receive the InvestorDaily newsletter.
