CVW - ClearView Wealth

[System]

Clearview Wealth Limited (CVW), formerly MMC Contrarian Limited (MMA), is a vertically integrated financial services company with a focus on the wealth management industry. MMC Contrarian owns a fund management and financial service business called ComCorp FS.

http://www.mmccontrarian.com.au

 

[Dona Ferentes]

mmm, nary a comment for the entire life of this outfit. (Somewhat sensible, as we shall see)

FY21 has been a transformational year and the business has achieved a number of milestones which place it in a strong position for the future and makes this an ideal time to undergo a strategic review. In particular:
• Strong balance sheet and capital base backed by net cash and investments of $374m as at 30 June 2021 (equates to 56 cents per share), and raising of $75m of Tier 2 capital and completion of other capital management initiatives in FY21;
• Solid business performance in FY21 in a challenging environment. Business has performed relatively well despite challenges presented by COVID-19 and the Board has declared a fully franked FY21 cash dividend of 1cps;
• Agreement to separation of the dealer group and financial advice business from the ClearView Group, through a strategic transaction with Centrepoint Alliance that was announced on 25 August 2021;
• Restructure of the company by line of business with additional and improved capability;
• Commencement of multi-year life insurance transformation project and progress towards the launch of a new contemporary technology platform and income protection product (ClearChoice) in late 2021; and
• With the process of migrating the private label wrap platform from Colonial First State to HUB24 complete, the process of simplification of the wealth management business has commenced with a view to further digitalisation.

One commentator had a look, and found it curious that 56c in cash and investments, and trading at 54c (now 61c) to be unnerving:

Clearview announced the review on Friday, saying that it was supported by its 60% shareholder – private equity group Crescent Capital. Crescent has been effectively trapped in the stock with no exit because no one seems to be interested in buying.

The announcement of a strategic review is tantamount to Crescent putting the $360 million group on the block. It comes just weeks after Clearview sold its financial advice business to Centrepoint Alliance for around $15 million worth of stock (a 25% stake) and $3.2 million in cash.

and the lack of interest?

Crescent bid for Clearview in 2012 at 55 cents a share, which after 8 years is where the shares currently area. Crescent has been looking for an exit since then but can’t find a bidder game enough. The banking royal commission found the group to have committed 300,000 criminal breaches of anti-hawking laws selling life insurance to poor people using aggressive cold-calling tactics.

- sometimes PE are masters of a black hole, rather than the Universe