1835i Makes Bid to Acquire Cashrewards

Taegukgi on 22/10/2021 - 13:41
Last edited 22/10/2021 - 17:39 by 2 other users

Source -

Online shopping rewards platform Cashrewards (ASX:CRW) is set to be bought by ANZ Bank’s innovation and investment arm 1835i, receiving a takeover offer at $1.135 per share.

The board backed the deal – alongside it’s largest shareholder Alium Capital – and said it was excited for the next phase of development.

“The proposed transaction is an endorsement of the quality of Cashrewards offering for members and merchants and will further advance our position as the leader in Australian cashback,” said CEO Bernard Wilson.

“It provides an opportunity for our shareholders to realise a significant premium to the prevailing trading price of Cashrewards shares.”

Wilson is indeed correct, the deal is a 19.5% premium to its closing price yesterday and 30.2% premium to its 30-day Volume Weighted Average Price.

However, it is a discount of nearly 35% to the $1.73 price it listed at only last December.

Cashrewards is the second company from the IPO class of 2020 to get a takeover bid with Youfoodz (ASX:YFZ). Youfoodz too got an offer at hefty discount to its IPO price.

While Cashrewards shares have underwhelmed since listing, they did rise this morning to match the takeover offer.

Why would 1835i takeover Cashrewards?

1835i was arguably a predictable candidate to takeover Cashrewards.

It was already a 19 per cent shareholder, having bought almost $26 million in shares at IPO and had retained it up to this day.

Cashrewards sat alongside other investee companies including Airwallex, Slyp, DiviPay and Valiant Finance.

In early July, it strengthened its partnership by enabling its 4.7 million consumer credit and debit card holders to use its platform.

At the time, Emma Gray – ANZ’s Group Executive for Data and Automation – said the partnership would help the bank engage in more personalised conversations with customers.

Cashrewards had promised an update on the program upon the release of its cash flow and activities report for the September quarter.

Commenting on behalf of 1835i was its boss Ron Spector who simply said,” We are excited to enter into an Implementation Deed with Cashrewards to support the company during the next phase of its development.”

Financial

Related Stores

Cashrewards
Cashrewards
Third-Party
1835i
1835i

Comments

  • Muzeeb on 22/10/2021 - 13:47
    +3

    TA is looking for a new job scotty

    the partnership would help the bank engage in more personalised conversations with customers.

    What corporate speak bs is this?

    • avoidfullprice on 22/10/2021 - 13:50

      Or, Cashreward membership will become exclusive to ANZ customers.

      • netjock on 22/10/2021 - 14:19

        Nah. That would just be kicking revenue out the door. Probably the P/E is worthwhile to take it private. Only IPO participants are suckers.

      • boretentsu on 22/01/2022 - 21:11

        Probably the reverse, a way to grow their customer base

    • SF3 on 22/10/2021 - 13:51
      +5

      TA should be promoted to head the bank's PR division.

      It's not like the bank engages their customers like TA does in OzB.

      • Muzeeb on 22/10/2021 - 13:52
        +1

        He won't. The big 4 bank would never allow a PR head to be called TightArse. They would also need his photo in the annual report instead of some TA logo as per cash rewards site.

        • Clear on 22/10/2021 - 15:15
          -2

          1835i isn't a big four bank lol.

        • CandyMan on 23/10/2021 - 12:28

          Why not, it’s pretty usual these days, plenty of photos as well in Hollywood

    • Clear on 22/10/2021 - 15:08
      +2

      You think they're going to fire everyone and get a whole new lot of staff? It's not that kind of 'takeover'. Cashrewards will still operate independently as per the ASX announcement.

      TA won't be going anywhere that's for sure.

      • dust on 22/10/2021 - 17:09
        +1

        Yep, a lot of these takeovers I believe have some sort of retention requirement for their existing staff. Otherwise they'd lose all the knowledge/key personnel of the company they're buying.

    • Joseph Ng on 22/10/2021 - 17:11
      +4

      TightANZ

  • orangetrain on 22/10/2021 - 13:55

    Wow, those initial loyal cashreward shareholders are shafted. I bet TA won't explain why they're bailing without giving value to their loyal shareholders. Enjoy your retirement with your success, TA

  • Edamamme on 22/10/2021 - 14:00

    Can’t say I didn’t see it coming after ANZ Max rewards came out. That and ShopBack has been killing it in comparison with offer and features. Although Cash Rewards tracking of deals is always amazing.

  • [Deactivated] on 22/10/2021 - 14:13

    Cashrewards share price was down in the dumps for a while. Share price up to 1.10 takeover almost certain to go ahead

  • netjock on 22/10/2021 - 14:26

    Expect a lot of ANZ spam.

  • SydBoy on 22/10/2021 - 14:30

    Shareholders who participated in IPO losing big time… !

    • dcep on 22/10/2021 - 18:24

      meanwhile aussie broadband 4 baggers from ipo

      free internet for life

  • askbargain on 22/10/2021 - 14:30

    Still better than their marshmallow competitor.

  • rektrading on 22/10/2021 - 14:31

    Legacy banks trying to catch up with fintech and stay relevant in 2021.

    This play is too little, too late.

    • Neoika on 22/10/2021 - 14:52

      Is cashback offer via affiliate network even considered as Fintech?

  • rompastompa on 22/10/2021 - 14:54

    Here's the ASX Announcement. Cashrewards will still act independently as Cashrewards / Cashrewards Max.

    Edit: The above link needs to be opened incognito, so here's a copy :D

    • Clear on 22/10/2021 - 15:09

      Cashrewards will still act independently as Cashrewards / Cashrewards Max.

      The crucial part no one around here is going to read.

  • KaTst3R on 22/10/2021 - 15:32
    +1

    1835i, is that the new BMW model?

    All the mum and dad investors who participated in the IPO just crystalised their loss. Holy balls…

    • rektrading on 22/10/2021 - 15:56
      +1

      The Cashrewards IPO is what the stonk market call a legal exit scam.

      Hype up Cashrewards on OzB > word of mouth cashback to family and friends > IPO > founders dump their bags on retail > retail rekt and crying.

    • dust on 22/10/2021 - 17:10

      This is why investors (not just mum and dad investors) shouldn't pick individual stocks. Indexed based ETFs are the way to go.

      • rektrading on 22/10/2021 - 17:13

        What is the best performance ETF? 5%, 10% or 20% 1Y?

      • Clear on 22/10/2021 - 17:30

        Unless you need some capital losses 😉

        • dust on 22/10/2021 - 17:31
          +2

          Oh I've got crypto for that! Much more effective for capital losses.

          • Clear on 22/10/2021 - 17:35

            @dust: You just need to buy all those new cryptocurrencies popping up while they're hyped and once the creators cash out you'll be at a loss pretty hard.

            I feel sorry for all those people that tried earning interest on their coins in Binance. A lot of time at tax time for very little in return.

            • dust on 22/10/2021 - 17:36

              @Clear: Buy the news sell the rumor. That's how it goes right?

              I feel sorry for all those people that tried earning interest on their coins in Binance. A lot of time at tax time for very little in return.

              Oh how come? It's pretty similar to declaring tax on interest earned in a bank account isn't it?

              • Clear on 22/10/2021 - 17:39

                @dust: Staking is the word I should have used. Bank interest is prefilled. Crypto staking is not iirc.

  • Seraphin7 on 22/10/2021 - 17:52
    +2

    The board backed the deal – alongside it’s largest shareholder Alium Capital – and said it was excited for the next phase of development.

    However, it is a discount of nearly 35% to the $1.73 price it listed at only last December.

    Pretty big slap in the face to the IPO shareholders right there.

    • tharlow on 22/10/2021 - 19:22

      It’s Probably Overpriced
      Imaginary Profits Only
      Insiders’ Private Opportunity

  • scotty on 21/01/2022 - 18:55

    In today's ASX announcement,

    Cashrewards Limited (‘CRW’) will be removed from the Official List at the close of trading on Friday, 21 January 2022 under Listing Rule 17.14, following compulsory acquisition of its remaining securities by 1835i Ventures Trusco III Pty Ltd in its capacity as trustee of the 1835i Ventures Trust III..

    That concludes 1835i's acquisition of all Cashrewards' shares, and CRW is no longer available on ASX.

Login or Join to leave a comment
Login Join