Bailador Technology Investments (ASX:BTI) banks $13M from sale

• Bailador Technology Investments (BTI) has realised a total of $13 million in cash proceeds, after selling its investment in Lendi
• In December 2020, online home loan platform Lendi announced its agreement to merge with Aussie Home Loans
• Lendi and Aussie Home Loans have now successfully completed the merger transaction, to form the Lendi Group 
• The $13 million sale of Bailador’s investment represents a 21 per cent uplift to Lendi’s current carrying value
• Bailador Technology Investments closed 1.45 per cent higher to trade at $1.40 per share

Bailador Technology Investments (BTI) has realised a total of $13 million in cash proceeds, after selling its investment in Lendi.

Lendi is a popular Australian online home loan platform, one of many businesses in the technology sector which Bailador has invested in. 

In mid-December 2020, Lendi announced its agreement to a merger with its fellow financial services group, Aussie Home Loans. More recently on April 28, 2021, Bailador announced that it had received confirmation from Lendi that the company would realise $13 million in cash proceeds, by selling 100 per cent of its investment in Lendi to existing shareholders.

However, this cash realisation was dependent on the merger transaction between Lendi and Aussie Home Loans being successfully completed. 

On May 4, 2021, Lendi and Aussie Home Loans successfully completed the merger transaction between them, to form the Lendi Group. In a press release, the newly formed Lendi Group said that the merger will see the union of Aussie and Lendi’s complementary capabilities, as well as the maintenance of the two distinctive brands.

Bailador’s $13 million sale of its investment in Lendi represents a 21 per cent increase on the current Lendi carrying value. This valuation uplift of $2.3 million also represents an increase of two Australian cents NTA per share (pre-tax).

These valuation changes will be incorporated into Bailador Technology Investments’ April 2021 NTA statement. 

Overall, the realisation of the company’s investment in Lendi represents an internal rate of return of 21 per cent, 2.4 times the investment cost.

The investment company has not yet revealed to the market how it intends to use the $13 million in proceeds from the sale of its investment in Lendi. 

Bailador Technology Investments closed 1.45 per cent higher to trade at $1.40 per share.