MoneyHero Limited, a prominent platform for personal finance and digital insurance aggregation in Greater Southeast Asia, has proposed a non-binding offer to acquire all shares of its competitor, MoneySmart. This strategic initiative is designed to strengthen MoneyHero's market leadership and create substantial synergies in the fast-growing personal finance and insurance sector in Asia.
MoneyHero Chief Executive Officer, Rohith Murthy said this acquisition will further strengthen the company’s leadership in Greater Southeast Asia, delivering enhanced products, services, and technological innovation. “Given MoneySmart’s recent share buyback, we believe we have made a fair and compelling offer that benefits both sides. Most importantly, we believe the synergies from this merger will drive significant value for our shareholders and customers”, he said.
According to the offer, MoneyHero has assigned a value of US$8.0 million to MoneySmart, with potential for additional valuation. (US$1 = RM4.37). The proposed value will be compensated with new MoneyHero shares, while any potential additional valuation will be paid in cash, contingent on the results of a comprehensive due diligence review. Although MoneyHero aims to acquire MoneySmart entirely, it is also considering purchasing shares from individual shareholders.
The proposed consideration of US$8.0 million in MoneyHero shares, along with an additional cash amount to be determined based on due diligence results, takes into account MoneySmart's recent capital reduction as detailed in filings with the Accounting and Corporate Regulatory Authority of Singapore. MoneyHero’s offer represents a premium for MoneySmart’s business and underscores the confidence in the value MoneySmart would contribute to the combined entity.