Fox Corp to take over lender Credible Labs for $397 million

Business

FILE PHOTO: Lachlan Murdoch, co-chairman and chief executive officer of Fox Corp., attends the annual Allen and Co. Sun Valley media conference in Sun Valley, Idaho, U.S., July 11, 2019. REUTERS/Brendan McDermid

(Reuters) – U.S.-based consumer lender Credible Labs Inc (CRD.AX) said on Monday it had agreed to be bought out by broadcaster Fox Corp (FOXA.O) for about A$585 million ($397 million).

Under the terms of the deal, Credible Labs, listed on the Australian Stock Exchange, said its shareholders will receive A$2.21 in cash per CHESS depository interest (CDI), which represents A$55.25 per share of common stock in Credible.

The offer of A$2.21 per CDI represents a premium of 7% to its last close of A$2.06 on August 2.

Credible provides and refinances student and personal loans, supplying information that allows individuals to compare and choose between different pre-qualified rates and options.

Fox CEO and Executive Chairman Lachlan Murdoch said in a separate announcement that the acquisition has “tremendous synergy” with FOX Business and FOX Television Stations, as Credible would benefit from access to the broadcast and entertainment giant’s huge audience.

As part of the agreement, Credible founder and Chief Executive Officer Stephen Dash will exchange shares equal to one-third of Credible’s outstanding common stock into units of a newly created Fox subsidiary, Credible said.

Credible’s board said it unanimously backs the proposal to shareholders, which is subject to certain approvals from the ASX.

($1 = 1.4728 Australian dollars)

Reporting by Rashmi Ashok in Bengaluru; Editing by Sonali Paul

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