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Paige Lim · · 3 min readMoneySmart rejects MoneyHero’s $8m acquisition offer
Lindsay Wong and Yong Jun Yuan of The Business Times also reported for this story
Nasdaq-listed MoneyHero Group has made a non-binding offer of US$8 million to acquire its competitor, MoneySmart.
However, MoneySmart on Friday (Aug 23) announced that it has rejected the unsolicited offer.
The board of the personal finance company unanimously determined that the approach was “neither serious nor credible,” and that it will not be entertained.
Photo credit: MoneyHero Group
“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,” the company said.
It added that the proposed merger does not align with its strategic objectives and would fail to deliver value to shareholders.
MoneySmart founder and chief executive Vinod Nair said: “The two businesses currently operate in a similar space but are on diverging paths in terms of strategy, financial sustainability and outlook.
“Our focus remains on advancing our products, services and innovation, being a trusted partner to customers and executing our growth strategy.”
The company noted that it achieved profitability in 2023 while generating positive free cash flow, which reflects the company’s “robust” financial health.
The move by MoneyHero came after the company laid off 80 employees in July to cut costs and improve its financial profitability. It also conducted two rounds of layoffs in 2022.
The Singapore fintech company operates online personal finance platforms that recommend financial products, including Seedly and SingSaver in Singapore. It also has a presence in Hong Kong, Taiwan and the Philippines.
MoneySmart is a personal financial marketplace owned by Singapore-based Catapult Ventures.
See also: MoneySmart posts two profitable quarters in the thick of a pandemic
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The board of MoneySmart unanimously determined that the approach was “neither serious nor credible.”
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