Commonwealth Bank of Australia, Australia's largest retail bank, has made a A$373 million ($397 million) takeover bid for family-owned financial planner Count Financial.

The acquisition would grow CBA's wealth management adviser headcount to over 1,850 from 1,220, ranking it second by total number of advisers in the country, as the firm seeks to tap Australia's $580 billion wealth management market. 

Under the terms of the deal, shareholders at Count may choose to receive either A$1.40 cash per Count share or A$1.40 in CBA shares. This implies an equity value of A$373 million. 

This is based on the volume weight average price of CBA shares on the Australian Stock Exchange in the 5 business day period ending on the day before the scheme meeting date, which is expected to happen in November 2011.

Count shareholders will also receive the fully-franked dividend of A$0.04 per Count share declared in 15 August, in relation to the firm's second half 2011 results. 

"While the offer from CBA was unsolicited, the directors and I believed we should put this offer to shareholders for approval," said Barry Lambert, the chairman of Count. Lambert and other family members hold an aggregate 20 per cent of Count.

"Key to our recommendation, is our belief that CBA understands the Count business and intends to maintain it as a standalone business in its wealth management division. CBA will also maintain and invest in Count's brand and franchise, including retention arrangements for franchisees and staff," Lambert added.

A scheme booklet containing all information on the transaction shall be sent to Count shareholders by October 2011. A shareholder meeting is expected in November, with a target completion in December.

According to Merrill Lynch and Capgemini, the total number of high net worth individuals in Australia has risen from 173,600 in 2009 to 192,900 in 2010, an 11.1 per cent increase. The combined wealth of Australia’s HNWIs was up 12.1% to $582 billion in the latest World Wealth Report. 

Dorus van den Biezenbos, wealth management specialist at Capgemini Financial Services said earlier this year in a statement: “Australia continues to be an important contributor to wealth in the region and globally, ranking as the 9th largest HNWI population out of 71 countries. The increase in HNWI population and wealth was significant in Australia due to Real GDP growth of 2.8 per cent in 2010 compared to 1.3 per cent in 2009, market capitalisation growth by 15.3 per cent and an increase in house prices by 5.8 per cent in 2010."

He added that the increase in wealth is also attributed to a comparatively low unemployment rate (5.1 per cent by year end), a strengthened exchange rate and a positive merchandise trade account due to return of prices of iron ore and coal exports.