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Money3 Corporation Ltd

Money3 Corporation completes sale of Small Amount Credit Contract business

Post completion the company is extremely well funded and reconfirms its commitment to paying a minimum fully franked dividend of at least 10 cents in financial year 2020.

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The sale proceeds will help fund the company's automotive loans business.

Money3 Corporation Ltd (ASX:MNY) has completed the divestment of its Small Amount Credit Contact (SAAC) lending business and received the initial payment of $35 million for the sale.

Sale proceeds will fund the ongoing growth of the company's automotive loans business.

The balance of the sale proceeds, expected to be $10 million-$11 million, is due in six equal monthly instalments following completion.

 “We are very excited about our position in the market”

Money3 managing director Scott Baldwin said he was delighted to have completed the sale of the Branch and Online SAAC lending businesses.

“This sale, together with our recent acquisition of the New Zealand-based business, Go Car Finance, are significant milestones on the strategic path of the company being a leading automotive credit provider in Australia and New Zealand.

“We are very excited about our position in the market and the availability of considerable funds to continue the strong growth of the automotive loan book both domestically and in New Zealand.

“Well positioned for growth”

“Our domestic auto lending business together with the contribution from the Go Car Finance business will largely bridge the earnings gap from the divestment of the SAAC business.”

Baldwin added: “Importantly, we are now well positioned for growth and have a clear focus on automotive lending.”

The company maintains its guidance for financial year 2019 net profit after tax of $35 million.

One-off costs associated with this transaction, coupled with the associated non-cash intangible adjustments, will be reflected in the financial year 2019 results.

Quick facts: Money3 Corporation Ltd

Price: $2.37

Market: ASX
Market Cap: $431.64 m
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