Aggregator nears merger deal with bank

by Manuelita Contreras17 Jan 2018
Aggregator Finsure takes one step closer to sealing its merger deal with Western Australian bank Goldfields Money after the two signed binding documentation ahead of a shareholder vote.

Goldfields signed a share sale and purchase agreement to merge with Finsure by buying 100% of the diluted shares in Finsure through the issue of Goldfields shares, an ASX update shows.

The transaction values Finsure’s equity at $61.1m and the merged entity at $97.5m based on the agreed capital structure. 

As part of the agreement, Goldfields will issue 40,750,000 shares to Finsure shareholders at $1.50 per share. This is higher than the $1.27 to $1.39 per share offered made by Firstmac. 

Firstmac set out its own acquisition bid last October, but it was rejected by the Goldfields board.  

The ASX update, released last Monday, says Goldfields directors believe the deal would be transformational for the company and would deliver substantial value for its shareholders.

Goldfields said the transaction would result in the combined entity enjoying profitability, increased scale, revenue uplift and diversified income streams, improved growth prospects, and access to wide distribution capabilities.

If approved, Finsure managing director, John Kolenda, will join the Goldfields board.

The proposed merger will be subject to a majority vote by Goldfields Money shareholders. Non-associated shareholders will have the opportunity to vote on the transaction. 

Goldfields has scheduled the shareholder meeting and deal completion for March 2018.

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