Openwork restructuring paves the way for growth
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Openwork’s shareholders have voted in favour of a restructuring deal with the network’s parent Zurich, which will see them receive 30% of preferential shares in the company.
Zurich has also boosted its loan facility to Openwork from £30m to £18m as part of the restructuring deal.
The network says the restruc-turing will also pave the way for its ambitious growth plans and secure greater value for all shareholders and advisers, while preparing the network and its advisers for the post-Retail Distribution Review operating environment.
Openwork believes the proposals would set a platform for the con-tinued growth of its business and ensure it has significant funding in advance of the RDR’s 2013 imple-mentation.
Its advisers will have the choice of operating a single-tie model, a multi-panel multi-tie model or a whole of market IFA model.
Martin Davis, chief executive of Openwork, says: “This agreement in principle is an important mile-stone for Openwork’s partners and for our business as a whole.
“It also signifies the start of the next phase of Openwork’s growth as a business and gives it the plat-form to create significant value and income for its partners and advisers.”
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