- Australian consumer finance company Money3 (MNY) has entered a binding agreement to acquire lending business Automotive Financial Services (AFS)
- The acquisition is expected to add a $52.1 million gross loan book in the near-prime automotive market
- Money 3 also began a trading halt this morning ahead of a pending capital raise announcement
- The company says the move aligns with its strategy of financing a broader market and extending product offerings
- Shares in Money 3 remain in the grey, trading at $2.96 each
Australian consumer finance company Money3 (MNY) enters binding agreement to acquire lending business Automotive Financial Services (AFS).
Acquiring the lending business is expected to add a $52.1 million gross loan book in the near-prime automotive market.
Money 3 says the move is aligned with its intentions to finance a broader market and extend product offerings. It also secured a $250 million warehouse securitisation facility in November to fuel loan book growth.
In a statement, the company highlighted AFS’ strong loan book quality noting less than one per cent of the loan book is in arrears of more than 30 days.
Money3’s MD and CEO Scott Baldwin said AFS’ product set complements Money3’s existing products nicely.
“AFS has spent considerable time establishing a S&P rated loan book funded by a large Australian bank that will remain in place after acquisition,” he said.
“While the company is able to bring funding to AFS to allow for expansion
of the loan book, AFS will also benefit from being part of a bigger group with like-minded individuals.”
MNY Trading halt
The stock entered a trading halt 15 minutes after the acquisition announcement, requesting the halt remain in place until the company makes an announcement regarding the raise or commences trading on 7 December.
The Company is not aware of any reason why the trading halt should not be granted.
Shares in Money3 last traded at $2.96 cents at 3:10 pm AEDT.