Clearview hints at more M&A in its latest strategic review as shares rise
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Just over a week since it netted $3.2 million from selling its financial advice business, life insurance and wealth management firm Clearview (ASX:CVW) hinted that wouldn’t be the last deal.
This morning Clearview announced it had begun a strategic review process. It says the review has the objective to “maximise ClearView shareholder value” as well as determine the optimal future direction of the company.
“The review will assess Clearview’s strategic options to unlock and enhance value for ClearView shareholders including potential change of control transactions,” it said.
The review begun after discussions with its largest shareholder Cresent Capital Partners, which initially became a shareholder after unsuccessfully bidding to snap up the company back in 2012.
While CVW released its FY21 results last week, it reiterated the past financial year was a positive one for the company.
“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,” it said.
Clearview boasted it had net cash and investments of $374 million and completed a $75 million Tier 2 capital raising during FY21.
It achieved a net profit after tax of $22.7 million, up 54% from the year before. After not paying a dividend last year, it reinstated payouts in FY21 of 1 cent per share.
The company said demand for life insurance product remained due to Australia’s large financially active population and heightened awareness about the need for protection and professional advice throughout life.
Clearview shares responded positively this morning gaining nearly 15% and are up nearly 80% in the past 12 months.