Singapore’s Syfe emerges as third bidder in battle for Australia-listed Selfwealth
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Mr Dhruv Arora's Syfe made a non-binding indicative proposal via Svava to acquire all of Selfwealth for A$65 million (S$55 million).
ST PHOTO: CHONG JUN LIANG
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SINGAPORE – Singapore-based investment platform Syfe has emerged as a third bidder in the battle to buy Selfwealth, one of Australia’s largest digital investing platforms.
The home-grown company has made a non-binding indicative proposal via Svava to acquire all of Selfwealth for A$65 million (S$55 million). This translates to 28 Australian cents cash a share, Selfwealth said in a statement to the Australian Securities Exchange (ASX).
Svava operates wealth management platforms through its Syfe brand in Australia, Singapore and Hong Kong. It is the third company publicly entering the foray to buy Selfwealth, following bids from Australia-based Bell Financial Group and AxiCorp Financial Services in 2024.
At A$65 million, Svava’s offer is at a 133 per cent premium to Selfwealth’s closing share price of 12 Australian cents on Nov 12, 2024, the day prior to Bell’s initial offer.
According to filings on ASX, Selfwealth received a takeover bid from Bell on Nov 13 to buy the company for 22 Australian cents per share. This valued Selfwealth at A$51 million, an 83 per cent premium to its Nov 12 closing share price.
Bell said the acquisition is expected to add 130,000 active portfolios, increasing its sponsored holdings by A$11 billion to A$94 billion.
The next day, privately owned global online brokerage firm AxiCorp made an offer at 23 Australian cents a share.
On Nov 25, Selfwealth said it had entered into a scheme implementation deed (SID) with Bell after the latter improved the offer to 25 Australian cents a share.
Selfwealth’s board had unanimously recommended that shareholders vote in favour of the Bell offer at a scheme meeting in the absence of a superior offer. The meeting is expected to be held before the end of March.
In the light of the higher bid from Svava on Feb 3, Selfwealth said this could reasonably be considered a superior proposal, and hence it is permitted under the Bell SID to engage with Svava.
This is to establish whether Svava’s offer is “reasonably capable of being valued and completed in a reasonable timeframe” and whether it is more favourable to Selfwealth’s shareholders than the Bell offer.
The proposal from Svava is non-binding and subject to a range of conditions, such as completion of due diligence by Svava, termination of the Bell SID and entry into exclusivity arrangements with Svava, as well as a binding implementation deed with it.
Selfwealth said it is currently engaging with the company and has requested further information regarding certain matters, including Svava’s funding capacity and potential requirements for regulatory approvals.
On Jan 31, Svava became a major shareholder of Selfwealth, holding 43.4 million ordinary shares or 18.83 per cent voting power.
Shares of Selfwealth were trading at 28 Australian cents a share on Feb 4, up 1.1 per cent, as the battle for the company heats up.
Singapore’s Syfe has grown quickly since its launch in 2019 after receiving its Monetary Authority of Singapore licence.
Founder and chief executive officer Dhruv Arora began his career as an equity trader at UBS Hong Kong, where he rose quickly to become one of the bank’s youngest directors. He built Syfe on the pillars of access, advice and affordability, catering to the wealth needs of individuals.
Today, the group boasts customers from more than 60 countries. It has raised US$79 million (S$107 million) to date and is backed by leading global investors, including Mr Peter Thiel’s Valar Ventures and technology investment company Unbound.
