Fintech Sargon Capital collapses

Administrators appointed to fintech hopeful Sargon, whose board includes former ALP senator Stephen Conroy.

Phil Kingston with Stephen Conroy, who last April joined the board of Melbourne fintech Sargon. Picture: Stuart McEvoy

The Phillip Kingston-run Sargon Capital has collapsed, with administrators McGrathNicol appointed to the fintech hopeful.

Sargon, whose board includes former Labor senator Stephen Conroy, had been eyeing an ASX listing.

Sargon’s collapse has a knock-on effect for the listed-superannuation software business OneVue Holdings, which had been planning to sell its trustee services business, Diversa, to Sargon.

OneVue on Thursday was placed under a trading halt in response to Sargon’s issues.

Sargon confirmed on Thursday that McGrath Nicol has been appointed as receiver of the Sargon Capital following moves by Chinese state owned insurance company Taiping Trustees.

Sargon said the receivers have been appointed to Sargon Capital but not its operating companies.

“We are working with them (Taiping Trustees) to understand their concerns and to quickly agree a constructive solution for all parties,” the statement said.

Sargon also announced Thursday that former Crown Resorts chairman Rob Rankin, has stepped down as chairman of Sargon.

The company said Rankin, who lives in London, had resigned as of January 23 in a move which was intended before and not related to the McGrath Nicols appointment.

Sargon offers corporate trustee services, along with cloud and tech products for superannuation funds.

Rob Rankin is a former chairman of Crown Resorts. Picture: Marie Nirmie

The company, which has about $20m in revenue, operates in Australia, New Zealand and Hong Kong, and has been busy making acquisitions since early 2016.

It has picked up Tidswell Financial Services, Linear Asset Management, The Hong Kong Trust Company, The New Zealand Trust Company and Madison Financial Group.

IOOF sold its corporate trust business to Sargon Capital last year and will no doubt be eager to lift its scale ahead of its listing plans.

Sargon’s collapse into administration follows its failed attempt to list on the ASX last year.

Sargon reached a deal with OneVue last July to buy OneVue’s Diversa, in a deal worth more than $40m.

But OneVue announced in November that it had agreed to amend the terms of its share purchase agreement with Sargon, allowing Sargon to pay $12m upfront, with another $31m to be paid by the end of May this year.

Announcing the deferred payment, chief executive Connie Mckeage said OneVue had given Sargon additional time to pay the rest of the price “in light of recent conditions in the Australian equity market”.

She said the deal was also aimed at “ensuring Sargon has enough financial flexibility to grow alongside OneVue and their other clients”.

Ms Mckeage said Sargon continued “to be an important partner” for OneVue “and we are looking forward to exploring new opportunities for strengthening our commercial relationship over the next few months”.

OneVue company secretary Ashley Fenton said in a statement to the ASX on Thursday that OneVue had asked for a trading halt in response to reports that an administrator had been appointed to Sargon Capital.

It has requested the trading halt until the start of trading on Monday.

The Australian has contacted Sargon Capital and OneVue for comment.

OneVue is chaired by former IOOF chief executive Ron Dewhurst, who went on to become a senior executive at Legg Mason in New York before returning to Melbourne.