TST PARTNERS PURSUES BACKDOOR LISTING AHEAD OF GROWTH DRIVE
Written on the 4 January 2017 by Lin Evlin
THE impending listing of TST Partners Group, a Melbourne based financial and legal services company via a reverse takeover of an unnamed ASX-listed company in early 2017, will mark the first entity on the ASX which offers multi-disciplinary professional services.
TST Partners, backed by Shanghai based private equity firm Jingyi Group, has entered into an agreement to acquire the majority shareholding interests of the listed company and will then enter into a scrip for scrip transaction to become a listed entity.
The unnamed company will be announced once the proposed transaction has shareholder, ASX and regulatory approvals. All parties are currently bound by confidentiality agreements.
Group managing director of TST Partners, Francis Gu (pictured), says the new ASX listed entity will work to fill a gap in the existing financial and legal services market as it will provide these services without the hefty price tag.
"Currently, I believe the top-tier legal and accounting firms are over charging clients due to their enormous operating costs and a lack of competition, whilst the smaller firms may not possess the resources or technical expertise to adequately service these clients," Gu says.
"We plan to fill the gap in the market that exists between the top-tier and smaller firms, especially in respect to the value of its service offering to overseas clients. TST Partners will position itself to provide highly technical financial and legal services without the top-tier price tag."
Gu believes that the newly listed company's multi-disciplinary offering will be a preferred choice for overseas clients as it will eliminate the need to co-ordinate across multiple service providers to complete a single transaction.
Managing director of Jingyi Group, Xianyou Kang, believes the firm's investment in TST Partners reflects an overall trend in China to look to Australia as a desired destination for expansion.
"We see the listing of TST Partners as an opportunity to take a significant lead in providing the ever growing need for financial and legal services by Asian investors and corporations looking to invest in Australia for the foreseeable future," he says.
"Traditionally, Chinese investors have focused on real estate when it comes to investing in Australia. However, our group believes that the professional services industry in Australia has been overlooked.
"Our Australian business investment will not only provide clients with financial and legal services, but also exposure to investment opportunities through our asset management business."
Following the listing, TST Partners will pursue an ambitious expansion, which will involve acquiring a number of accounting and legal practices in Melbourne and across Australia.
TST Partners will also have access to resources in China including state of the art office facilities in Shanghai as well as a team of client relationship staff who will work to drive business to the Australian offices.