Bell Financial Group (ASX: BFG) has launched a $51 million takeover bid for low-cost trading platform SelfWealth (ASX: SWF) that will see it acquire all the company’s shares at a price of $0.22 each.

The bid follows an approach from Bell in October and a subsequent period of engagement between the two companies including due diligence to determine whether Bell could develop a proposal likely to be in the best interests of SelfWealth shareholders.

The board of SelfWealth has agreed to progress negotiations on an exclusive basis and said it intends to unanimously recommend that shareholders vote in favour of the proposal—which remains subject to the agreement of binding documentation, as well as SelfWealth board and shareholder approval.

Cash or scrip offer

Bell’s proposal allows SelfWealth shareholders to select the consideration in cash or a scrip alternative and values SelfWealth at approximately $51m on a 100%-equity basis.

The deal represents an 83% premium to the company’s last closing share price of $0.12 and an 85% premium to the one-month volume-weighted average price of $0.119.

The acquisition will add almost 130,000 active portfolios to Bell’s books and increase its sponsored holdings by $11 billion to $94b.

Minimal disruption

Bell chair Brian Wilson was confident the integration could be achieved with minimal client disruption, given the similarities of the two businesses.

“We are excited by the prospect of welcoming SelfWealth’s clients and team to Bell,” he said.

“We believe both businesses will benefit from a superior user experience and access to a broader array of products and services.”

Compelling offer

SelfWealth chair Christine Christian said Bell’s offer was compelling for shareholders, team members and clients.

“We believe it would deliver significant value with an attractive cash price and the potential to share in possible synergies for those electing to receive Bell shares,” she said.

“We also believe our clients will benefit from Bell’s diversified wealth management offering.”