SFUK Acquisition Fair and Reasonable
Sydney, Oct 20, 2014 AEST (ABN Newswire) - Emerchants Limited (
ASX:EML) is pleased to advise that the Independent Expert, Ernst & Young Transaction Advisory Services Limited, has concluded that Emerchants' proposed acquisition of 100% of the issued share capital of Store Financial Services UK Limited (SFUK) for $24.9 million, payable by cash and the issue of new Emerchants' shares, is fair and reasonable to non-associated shareholders of Emerchants.
Emerchants' Independent Directors also unanimously recommend that Emerchants' shareholders approve the acquisition.
The conclusion of the Independent Expert removes one further condition precedent to the acquisition of SFUK.
The full Independent Expert's Report has been released to ASX and despatched today to all Emerchants' shareholders together with the Notice of Annual General Meeting, Explanatory Memorandum and Proxy Form. Emerchants' Annual General Meeting will be held at 11:30 am (Sydney time) on Wednesday, 19 November 2014 at The Westin Sydney, 1 Martin Place, Sydney, New South Wales.
Emerchants' Managing Director, Tom Cregan said, "The proposed acquisition is a transformational deal for Emerchants in that Emerchants is expected to generate $8.7m in revenue, $2.7m in EBITDA and $2.2m in NPAT in CY2015. We expect SFUK's strong organic growth rates, averaging 13-50%, depending on product and country, to propel earnings higher in FY16 and provide Emerchants with a solid platform for incremental growth as we look to leverage our re-loadable technology to service potential European customers in a prepaid market ten times the size of Australia".
About Emerchants Ltd
Emerchants Ltd (ASX:EML) (OTCMKTS:EMCHF) is a payments solutions provider of prepaid financial card products and services in Australia. By using its proprietary Secure Account Management (SAM) system, the Company provides its clients with innovative financial service payment solutions for reloadable and nonreloadable pre-paid card programs.
Emerchants' proprietary technology, processing capabilities and program management services offers clients more control and flexibility in managing corporate expense programs, funds disbursement, petty cash, per diems, emergency payments, disaster/welfare programs and many other individual and bulk payment scenarios. Emerchants partner with well-established banking institutions and card associations (eftpos, Visa) to ensure card programs are fully compliant, scalable and easy to implement for clients.
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