Connective

Background

Connective Group (�Connective�) is Australia�s leading mortgage aggregator, operating as an intermediary between a lending panel of over 50 financial institutions and its vast network of over 3,700 Connective brokers throughout the country. Connective has a unique value proposition and business model, with one in nine of all Australian home loans written by a Connective broker. Following inbound interest, 333 Capital was appointed by the Connective board as the exclusive financial adviser to conduct a sale process for the company.

How we helped

333 Capital ran a comprehensive sale process including:

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• Preparing all sales documents, including an information flyer and detailed information memorandum.
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• Successfully navigating and driving the sale process in an environment being impacted by recommendations that were being handed down by the Hayne Royal Commission.
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• Engaging with and co-ordinating management of other advisers to prepare financial and legal vendor due diligence reports.
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• Responsibility for developing and managing the deal strategy and tactics resulting in competitive tension being maintained throughout the entire process.
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• Data room and QA process coordination to reduce distractions for company Management.
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• Advising the board on and undertaking various stages of deal negotiations with bidders.
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• Providing expert advice on sale strategy including completion mechanics and documentation.
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Result

The process led to the final selection of ASX listed Australian Finance Group as the successful bidder, with an enterprise valuation of $120 million.

An Independent Expert has determined that the proposed transaction is fair and reasonable and in the best interests of Connective shareholders in the absence of a superior proposal. Completion of the transaction remains subject to a number of conditions precedent, including ACCC clearance.