The process to find a backer for MoneyMe is said to be reaching the pointy end.
Working on the process has been investment bank Morgan Stanley, and while the official line from the company is that the bank has been working to assess MoneyMe’s capital structure and find a backer for the business, numerous sources in the market believe that the company is on the market and looking for a buyer.
MoneyMe says that the group was aiming to update the market on the process in April, but did not comment on where the process was up to.
DataRoom understands that parties have been interested in parts of the business but not the company as a whole, so it will be interesting to see if the business is subjected to a break-up or what the outcome will be.
It’s tough times ahead for non-bank lenders like MoneyMe at a time of rising funding costs.
Yet this year, MoneyMe put out an update to the market saying it had made a net profit of at least $8m for the six months to June, turning around from earlier losses, and had record gross revenue for the half of $117m.
It was continuing its transition to lower credit risk assets.
MoneyMe had previously said that it was sourcing funds for growth for its new autopay product and to pay down a loan to Pacific Equity Partners, with the credit facility understood to be worth about $75m.
Last year, MoneyMe said that its lending had declined because of the rapid rate of its loan book growth.
After buying SocietyOne, its loan book had grown from $333m last financial year to $1.4bn.
Personal lender MoneyMe listed in 2019 with a $211.8m market value.
Shares were sold at $1.25 as its owners looked to raise $45m. Now its market value is $69.4m, after it was over $100m late last year.
Moneyme.com.au was promoted as a company that offers personal loans, cash loans, short-term loans and fast cash advances and aimed to be the No.1 challenger to the major banks using innovative technology.
It now offers personal loans, car finance and credit cards.
The company was founded in 2013 by Clayton Howes.
Loans of up to $25,000 were originally offered by the group, with credit card limits worth up to $10,000 and interest rates of between 16.99 per cent and 25.99 per cent charged.
The process to find a backer for MoneyMe is said to be reaching...
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| Last trade - 15.57pm 10/05/2024 (20 minute delay) ? |
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