Money3 Corporation Announces SACC Sale; Shares Resume Trading

Money3 Corporation Limited (ASX: MNY) is an ASX listed credit providing company, based in Australia. The company provides both the secured and unsecured loan to the customers in the form of various loan products including personal loan, car loan, fast cash loan for emergencies etc.

Trading Pause:

On 20th May 2019, the company notified the market, that the listed securities of Money3 Corporation would be temporarily paused for trading on ASX due to a pending announcement.

Trading Halt:

Soon after the pause, the company released a second statement on ASX and mentioned that it had requested ASX to put a halt on the trading of its listed securities due to a pending announcement regarding it’s exit from Small Amount Credit Contracting (SACC) lending.

Conclusion of selling small amount credit contract business SACC:

On 20 May 2019, the company further notified that it had concluded the divestment of its Small Amount Credit Contract, SACC, lending business (as notified on 25 February 2019), post this announcement the trading halt was lifted. MNY mentioned that it has obtained the initial payment of $35m for the sale.

The proceeds will be deployed to fund the ongoing growth of the automotive loans business. The balance of the sale proceeds is anticipated in the range between $10m – $11m, due in 6 equal monthly instalments after the conclusion of the sale. On a normalised basis, the MNY maintains its outlook for FY19 Net Profit After Tax of $35m.

One off cost associated with this transaction, coupled with the associated non-cash intangible adjustments will be demonstrated in the FY19 report. After the finalisation of the sale, MNY would be highly well funded, and it reconfirms its commitment to paying the minimum fully franked dividend of at least 10 cents in FY20 period.

Shaw and Partners Emerging Leaders Conference:

In the recent Shaw and Partners emerging leaders conference presentation released on 16th May 2019, the company highlighted its 1HFY19 financial performance; the gross loan book of the company increased by 14.3% to $351.9 million in 1HFY19. With a 9.3% increase in Group Revenue to $66 million and 13.3% increase in Group NPAT (compared to pcp), the numbers appeared to be steadily rising.

Apart from the financial performance, the company also discussed about its exit from SACC and new acquisition of Go Car Finance to enter the New Zealand market.

New Shares Issued:

On 13th March 2019, the company announced the issue of new shares for the purpose of the partial consideration for acquisition of Go Car Finance business. It issued 791,209 ordinary shares subject to voluntary escrow to 11th March 2020 and another 263,736 ordinary shares subject to voluntary escrow to 11th March 2022. A total of 1,054,945 ordinary shares were issued an issue price of $1.82 each. The newly issued shares are ranked equal to the in all respects with the same existing class.

Acquisition of Go Car Finance:

Further, on 13th March 2019, the company announced the conclusion of the acquisition of New Zealand-based Go Car Finance. The deal costed upfront payment of NZ$14 million in cash and NZ$2 million in the script to the Go Car Finance founders.

Stock Performance:

By the closure of the trading session, on 20 May 2019, the stock of the company was at a price of A$2.210, up by 9.406% from its previous close.


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