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February 21, 2008 |
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TRICOM EQUITIES: Bell Financial To Acquire Company Bell Financial Group (ASX: BFG) has signed Heads of Agreement for the acquisition of 100% of Tricom Group, subject to a number of conditions, including satisfactory completion of due diligence prior to March 7, 2008. Published reports said that Bell is expected to pay a AU$1 nominal sum for the business. Another salient part of the agreement is the "earn-out mechanism" for Tricom's shareholders and brokers. The brokers will paid to keep the client base intact and to keep earning money for the company, FairfaxDigital explains. Should all conditions precedent be satisfied Bell Financial Group would provide a capital infusion into, and take control of, Tricom. An earn-out mechanism would be put in place for existing Tricom shareholders assuming Tricom meets certain performance targets. The acquisition, if completed, would benefit staff and clients of both Bell Financial Group and Tricom. About Bell Financial Bell Financial Group was founded with the goal of assisting its clients in every aspect of their financial lives. It provides comprehensive and personal services. About Tricom Group Tricom was formed in Sydney in 1994 as a specialist futures broking firm. The Tricom group has since grown rapidly to become an integrated investment and financial services company, which now has operations spanning four pillars: Broking Solutions; Margin and Securities Lending; Capital Markets and Corporate Advisory; and Wealth Management. According to several Australian publications, Tricom was forced in January to cut its margin lending exposures as stock prices dropped. The company has cut its margin loan book to AU$900 million from AU$2.4 billion in June 2007. FairfaxDigital thinks that the company's value is about to be reduced to zero. It was placed under monitoring by the Australian Securities Exchange because of its financial problems, The Sydney Morning Herald reported. |
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