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Takeover offer made for Prospa

A consortium led by the Salter Brothers Tech Fund has launched a takeover scheme for small business lender Prospa Group backed by the latter's board that values Prospa at A$74 million.

Tuesday, February 27th 2024, 6:27PM

by Jenny Ruth

That's a fraction of the A$610 million valuation when Prospa listed on the ASX in 2019.

The offer is subject to a number of conditions, including the approval of Australia's Foreign Investment Review Board and of Prospa shareholders.

The offer is either 45 Australian cents per share or shares in a new unlisted public company named PGL Holdco, but holders of at least 74% of Prospa must elect the scrip option for the takeover to succeed.

The cash consideration will be partly funded by Prospa lending the consortium up to A$12 million and that will also require Prospa shareholders' approval – a meeting to approve this funding is planned to be held immediately before a meeting to vote on the scheme.

Prospa shares closed at 37.5 Australian cents on Monday. The shares peaked at A$5.09 in September 2019 but have traded below A$1 for more than a year.

The shares jumped as high as 43 cents on Tuesday before ending the day at 42.5 cents.

A committee of Prospa's independent directors, led by chair Gail Pemberton, has unanimously recommended the offer in the absence of a superior offer and as long as an independent expert concludes that the offer is in the best interests of Prospa's shareholders.

The committee of independent directors “believes that this transaction is in the best interests of Prospa shareholders,” Pemberton said, adding that the offer represents a 26% premium to Prospa's volume-weighted average price since its last earnings update.

Earlier today, Prospa reported an A$6 million first-half net profit compared with an A$5.5 million net loss in the previous first half.

The company said its total loan originations were down 27.4% at A$308.3 million in the six months from the previous first half with New Zealand originations down 32.3% at A$63 million.

“Lower originations reflect the deliberate tightening of credit settings,” the company said.

It said net bad debts “remained elevated” at A$53.7 million, down slightly from A$54 million a year earlier, and increased to 12.9% annualised of average gross loans from 12.5%.

Tags: Prospa

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AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.75 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.75 6.65
ASB Better Homes Top Up - - - 1.00
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BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
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Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
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Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
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SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
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TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.35 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.75 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 8 April 2024 9:21am

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