iFast Corporation will acquire a 30% stake in Financial Alliance Corporation, the holding company of Financial Alliance, for $19.58 million.
The acquisition company is a licensed financial adviser and capital markets services licensee, with over 450 financial advisory representatives. It has been a longstanding business partner of iFast, says the group.
The price consideration is based on the company’s estimates, which represents a 16 times price to earnings ratio for FY2025 and 12 times for FY2026.
iFast will fund the acquisition in cash through a mix of internal resources and external borrowings.
iFast says that the financial advisory industry in Singapore has substantial growth potential, and views the acquisition as a means to capitalize on this growth.
It sees Financial Alliance Corporation as one of the long-term winners of industry consolidation with the potential to list in the next two to three years.
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“We believe the necessary foundations are in place for FACORP to emerge as a leading noninsurance company-owned player in Singapore, with the scale and capabilities to serve as a reference operating model. We look forward to supporting FACORP in its journey to become the first listed financial advisory company on the Singapore Exchange,” said Lim Chung Chun, Group CEO and Chairman of iFAST Corp.
Shares in iFast closed 5 cents higher or 0.525% up at $9.57 on Jan 5.
