IOOF has valued its recent acquisition Financial Partnership at well over $2 million, according to documents lodged with the ASX last week.

In its release to the market IOOF said it would issue 176,012 redeemable converting preference shares to advisers and management in dealer group Financial Partnership to scoop up the remaining 75 per cent of the company it did not already own. At close of trade last Friday IOOF shares were up slightly to $8 meaning it paid almost $1.9 million in shares for the dealer group, which it plans to merge with Winchcombe Carson – its in-house financial planning arm. IOOF also chipped in a cash component for its Financial Partnership buy-out, which was not disclosed to the ASX. IOOF will issue Financial Partnership advisers with the preference shares on the condition they continue to provide financial planning services to IOOF following the buy-out. The listed company has also included a lock-in clause meaning advisers cannot cash in their IOOF converting preference shares until April 9, 2009. After the merger is complete IOOF will have about 120 advisers under the banner of its Australian Financial Services Licence (AFSL), with the planning group to be led by Stuart Abley, head of Financial Partnership. Current head of Winchcombe Carson is understood to be moving to a back-office role with the dealer group. For the time-being Winchcombe Carson and Financial Partnership will operate as separate brands under a single AFSL.

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