One of WA’s oldest brokerage houses DJ Carmichael & Company is in merger talks with a UK-based player.
One of WA’s oldest brokerage houses DJ Carmichael & Company is in merger talks with a UK-based player.
The independent Perth group would not confirm or deny rumours on Tuesday that the company was in takeover discussions with WH Ireland, one of the largest independent regional stockbroking houses in Britain, though it is understood that senior staff were advised of the move late last week.
DJ Carmichael & Company managing director Rod Beeton said that in the past 18 months the company had been looking at alliances and strategic initiatives and would continue to do so.
WA Business News understands the discussions have been ongoing during recent months with WH Ireland, which has an associate office in Mounts Bay Road, Crawley.
DJ Carmichael has had a colourful few years since 2003 when listed Australian Heritage Group, led by then high-profile businessman and former stockbroker Tony Barton, sold its half share in the brokerage in a management buy-out that severed ties between the two groups.
Under the MBO, a group of 20 Carmichael staff led by Mr Beeton paid $1.5 million for Australian Heritage’s stake – its entry price into the broker in November 2000.
The Australian Heritage exit gave the broker’s staff and management, including Mr Beeton, full ownership of firm.
In 2003, Mr Beeton reportedly said that returning to a privately held independent structure meant the business would restore its heritage as a business owned and run by those working within the firm.
At the time both sides appeared to agree the relationship had not worked. It was also reported at the time that Australian Heritage believed its half ownership of DJ Carmichael subdued investor interests in its shares.
In the 2005 WA Business News Book of Lists, DJ Carmichael was ranked second behind Patersons Securities Ltd by number of authorised representatives.
The brokerage had 68 full-time staff and 46 authorised representatives in WA, putting it just ahead of Macquarie Financial Services’ state office with 70 staff and 40 representatives.
Australian Securities and Investments Commission records show Mr Beeton’s fellow directors at DJ Carmichael Pty Ltd are Craig McGowan, Ian Dorrington, Ian Danaher and Gerard Connolly.
According to ASIC records, Minerals Securities Ltd dominates the shareholder register, with the next biggest shareholders being interests associated with Derek Steinepreis, Ian Dorrington, Craig McGowan and Andrew French.
Linked to Manchester for more than 150 years, WH Ireland has offices in London, Blackburn, Cardiff, Colwyn Bay, Lancaster, Malvern, Birmingham, and Preston, as well as in Sydney, Perth and Adelaide.
The firm’s corporate finance department also acts for companies traded on the Alternative Investment Market (AIM) of the London Stock Exchange as a Nominated Adviser (NOMAD) and Broker.
The AIM market is a popular option among Perth’s mining stocks, with many taking advantage of exposure to London investors, who typically have a big metals and commodities focus.
