NASDAQ-LISTED MoneyHero Group has made a non-binding offer of US$8 million to acquire MoneySmart, the Singapore fintech company said on Thursday (Aug 22).
Rohith Murthy, chief executive of MoneyHero, expects the purchase to strengthen the company’s position in Greater South-east Asia, delivering improved products, services and technological innovation.
Under the terms of the offer, MoneyHero valued MoneySmart at US$8 million, with potential valuation upside, said the company.
The consideration of US$8 million will be paid in new MoneyHero shares, while the potential additional upside will be paid in cash contingent on the results of a due diligence process.
Even though MoneyHero intends to fully acquire MoneySmart, the company said it is also exploring the purchase of any number of shares from individual shareholders.
It said the consideration and potential upside reference MoneySmart’s recent capital reduction, based on filings made with the Accounting and Corporate Regulatory Authority of Singapore.
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Murthy added: “Given MoneySmart’s recent share buyback, we believe we’ve made a fair and compelling offer that benefits both sides… We believe the synergies from this merger will drive significant value for our shareholders and customers.”
The company noted that its offer reflects a premium for MoneySmart’s business.
MoneyHero operates online personal-finance platforms that recommend financial products. It runs platforms such as Seedly and SingSaver in Singapore, and also has a presence in Hong Kong, Taiwan and the Philippines.
The group listed on Nasdaq in October 2023. This was after it merged with special purpose acquisition company Bridgetown, which is backed by PayPal co-founder Peter Thiel’s venture firm and Hong Kong tycoon Richard Li’s Pacific Century Group.
In July, MoneyHero laid off 80 employees to cut costs. It had previously conducted two rounds of layoffs in 2022.
