Axi Seeks to Strengthen Australian Market with Bid for SelfWealth

Axi Seeks to Strengthen Australian Market with Bid for SelfWealth

Axi Corp Financial Services Pty Ltd has strategically expanded its presence in the Australian market by bidding to acquire SelfWealth Ltd (ASX), a leading low-cost trading platform. Axi has offered AUD $0.23 per share, valuing SelfWealth at approximately AUD $52 million (USD $34 million).

This bid comes after Bell Financial Group Limited (ASX), an Australian full-service broker, presented a competing offer of AUD $0.22 per share. Prior to these bids, SelfWealth’s shares had been trading in the AUD $0.12-$0.13 range for several months, indicating that the offers have generated significant market interest. On Thursday, SelfWealth shares closed at AUD $0.25, surpassing both the Axi and Bell bids, suggesting that investors are anticipating a potential bidding war or a higher offer.

Axi Seeks to Strengthen Australian Market with Bid for SelfWealth

Axi has expressed its readiness to negotiate swiftly and finalize a binding implementation deed without due diligence or financing conditions, signaling confidence in the deal’s execution. SelfWealth, founded in 2012 and publicly traded since 2017, reported revenues of AUD $27.6 million and a net profit of AUD $3.4 million for the fiscal year ending June 30, 2024. The company manages funds under administration totaling AUD $10.7 billion and boasts 129,000 active portfolios.

Axi’s bid to acquire SelfWealth represents a significant step in expanding its foothold in the Australian market, with both companies now at the center of heightened investor interest. With SelfWealth’s shares trading above the bid price, the prospect of a bidding war looms large, potentially driving up the final acquisition price.

So, Axi’s offer, free of due diligence or financing conditions, positions it as a strong contender, and if successful, the acquisition could bolster Axi’s market share, complementing its global presence. The outcome of this deal will likely have broad implications for the online brokerage landscape in Australia.

Also, stay updated with the Latest Broker News.

Leave a comment