MoneySmart rejects buyout offer from rival MoneyHero

Personal finance portal MoneySmart Group has declined an US$8 million (S$10.5 million) offer from its competitor MoneyHero Group to acquire all its shares on the same day the proposal was made.

- Timothy Goh

In a media statement issued on the evening of Aug 23, MoneySmart said its board has unanimously determined that the offer is "neither serious nor credible" and that it will not entertain it.

"The manner in which the offer was made public, with no prior discussions with MoneySmart management, is highly unusual and has not engendered MoneySmart's confidence in, or openness to, such discussions," it said.

Earlier on Aug 23, MoneyHero had made the non-binding offer to acquire all shares of MoneySmart, but said the US$8 million value could be adjusted following a due diligence process.

The payment would consist of new MoneyHero shares, with any additional valuation to be settled in cash.

While MoneyHero aims to acquire 100 per cent of MoneySmart, it said it is also willing to buy any number of shares from individual investors.

In rejecting the offer, MoneySmart also noted that the proposed merger does not align with the firm's strategic objectives and would fail to deliver value to its shareholders.