ASX-listed ADI Goldfields Money Limited says that “significant progress” has been made on its proposed merger with major aggregator Finsure.
Goldfields provided an update on the proposed merger on 5 January.
“Binding documentation, due diligence and regulatory approval work streams are now well advanced, and both parties remain committed to shortly finalising binding documentation to reflect the key commercial terms of the proposed transaction as set out in the process agreement,” the group said.
“Goldfields Money and Finsure have agreed to extend the date on which the process agreement will automatically terminate from 5 January 2018 to 12 January 2018 to allow further time to finalise due diligence and binding documentation.”
The key commercial terms of the proposed deal would see Goldfields Money merge with Finsure by acquiring 100 per cent of the diluted shares in Finsure via the issue of Goldfields Money shares.
Goldfields Money shares would be valued in the transaction at $1.50 per share.
If implemented, the merger would see Goldfields Money issue 40,750,000 shares to Finsure shareholders, comprising approximately 63 per cent of Goldfields Money on a diluted basis including Goldfields Money Performance Rights.
The new shares would be issued at $1.50 per share, valuing Finsure’s equity at around $61.1 million and the merged group at around $97.5 million.
The Goldfields Money board would continue to comprise a majority of independent directors, with Finsure shareholders entitled to nominate one Goldfields Money director (Mr Kolenda) at the invitation of the current Goldfields Money board.
The existing management would continue to be responsible for regulation, risk and compliance in relation to Goldfields Money’s banking licence.
As at 30 June 2017, Finsure has a network of 1,200 loan writers across Australia and a historical book of approximately $26 billion.