Thinc directors miss out on £60m deferred Axa payment
Share
Former Thinc Destini directors will not receive their share of a £60m deferred payment for the group from Axa after it failed to hit performance targets.
In October 2006, Axa’s Advisory Services arm, now called Bluefin, bought Thinc for a total £100m consideration. This included a £10m initial payment and a £60m deferred consideration based on the group’s performance in 2009, as well as £30m to restructure its debts.
However Grant Thornton has declared the 2009 targets were not reached, meaning the deal has cost Axa just £40m in total.
On October 5, Money Marketing revealed Bluefin had reported a £62m write-down due to costs relating to its restructure, which included cutting its headcount from 180 to just 50.
A statement from Bluefin says: “Market conditions and the regulatory environment, for example the mortgage market, which could not have been anticipated in 2006 has impacted the Bluefin Advisory Services group of companies and its clients. This was a major factor in the financial performance of the business in 2009.
“Bluefin Advisory Services remains a strong business which is well placed for RDR. Both divisions Bluefin Wealth Management and Bluefin Corporate Consulting are performing well and the business as a whole is moving into a growth phase.”
Former Thinc Group chief executive Simon Chamberlain and other former Thinc directors were majority owners of the group along with Hbos, now owned by Lloyds Banking Group, and Friends Provident who had small shareholder positions.
Update to story: Chamberlain gave up all rights to any deferred payments when he left the firm in July 2007.
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (8)
David Quarrell APFS | 8 Dec 2010 1:19 pm
Great news , this is Karma ! Anyone who came under Thinc's carve up of Network 300 will understand.
Unsuitable or offensive? Report this comment
Simon Booth | 8 Dec 2010 1:19 pm
So it has cost AXA 'only' £40m - Great way to buy a 50 strong business boys!
And the write-downs, of course.
Would you like to come and have a look at my business on that basis......
Maybe Father Xmas will be coming early this year!
Unsuitable or offensive? Report this comment
Anonymous | 8 Dec 2010 1:28 pm
I am pleased to hear that the greedy directors have missed out. I had a lucky escape in not joing the group but some of my friends were less fortunate and got shafted.
Unsuitable or offensive? Report this comment
Darren | 8 Dec 2010 1:32 pm
What goes around comes around. In the dark days after the demise of Network 300 we did not have much to smile about.
I and many others will be allowing ourselves a little smirk now.
Less than 3p on every £1 lost
Unsuitable or offensive? Report this comment
Anna Devisor | 8 Dec 2010 3:12 pm
I feel very sorry for the directors and managers of Thinc who missed out on bonuses. Everything about the acquisition of our previous company was done with the client in mind. None of the managers were only thinking of taking short-term commission in order to boost the company profits and consequently their share of the earn-out. It's such a shame that so many of the good advisers felt the need to go elsewhere in order to provide unbiased, honest advice to their clients.Thinc provided us with all of the support that we needed to provide whole-of-market advice to our clients and certainly didn't employ a Director of Propositions to cobble together some off-the-peg solutions that were completely unsuitable for them. I can imagine that they are gutted after all the hard work and dedication that they invested in the business when they could have taken the easy way out and put in a quick-sale process while they all disappeared down the pub. What a black day for Financial Services.
Unsuitable or offensive? Report this comment
Lionel Ritchie | 8 Dec 2010 4:40 pm
We're going to Party, Kalamu, Fiesta, forever. Come on and sing along!
Unsuitable or offensive? Report this comment
John D Taxpayer | 9 Dec 2010 3:23 pm
Not many tears shed over this news it seems. I wish to declare no personal interest in (or direct knowledge of) Thinc but every story I saw written about it suggested one thing - Avoid
Unsuitable or offensive? Report this comment
Dathan Steele | 9 Dec 2010 8:53 pm
It's amazing how much money life co's are able to burn through in their fruitless attempts to buy influence in the IFA market. Bankhall, Parkrow etc etc.
Madness!
Unsuitable or offensive? Report this comment