Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Borrow

Fox sees value in Aussie fintech business

By Cameron Micallef · August 05 2019
Reading:
egg
egg
egg

Borrow

Fox sees value in Aussie fintech business

By Cameron Micallef
August 05 2019
Reading:
egg
egg
egg
Fox Corporation

Fox sees value in Aussie fintech business

author image
By Cameron Micallef · August 05 2019
Reading:
egg
egg
egg
Fox Corporation

A household name in the broadcasting world has expressed interest in fintech, having struck up a deal to acquire an ASX-listed consumer finance business. 

Fox Corp said it had entered a deal to acquire the ASX-listed company known as Credible Labs, which is a digital platform that gives consumers the opportunity to compare rates and providers of student loans, personal loans and mortgages. 

With Credible’s shares last closing at $2.06, a statement noted that Fox has offered investors a 31 per cent premium as an incentive to sell, which will see shareholders offered $2.21 per share.

The broadcaster’s executive chairman and CEO, Lachlan Murdoch, said Fox would benefit from Credible’s reach and scale.

“The acquisition of Credible underscores Fox Corporation’s innovative digital strategy that emphasises direct interactions with our consumers to provide services they want and expand their engagement with us across platforms,” he explained.

Advertisement
Advertisement

As part of the transaction, and subject to certain approvals from the Australian Securities Exchange (ASX), Credible founder and CEO Stephen Dash would exchange shares equal to 33 per cent of Credible’s outstanding common stock into units of a newly created Fox subsidiary.

The agreement would also see Mr Dash continuing to serve as Credible’s CEO.

“Fox Corporation’s record of innovation and focus on audience engagement will further enhance Credible’s position as a leading consumer finance marketplace in the United States, creating opportunities for organic growth and the expansion of the Credible platform,” Mr Dash said.

The transaction is expected to close in the fourth quarter of the year and is conditional to a majority vote of all Credible shareholders, as well as a majority vote of all shareholders other than Mr Dash and his affiliates.

Regulatory approval from the ASX and other customary closing conditions will also be required.

Following the equity purchase, expected to be $389 million, Fox said it would commit up to $110 million in cash to fund Credible’s operating needs over the next two years.

This email address is being protected from spambots. You need JavaScript enabled to view it.

Fox sees value in Aussie fintech business
Fox Corporation
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article
author image

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.