Stake lobs bid for rival Selfwealth at 17.5¢ per share
Australia’s crowded online retail trading market is set for a shakeup.
Street Talk understands fintech upstart Stake, which is chaired by ex-Perpetual chief executive Geoff Lloyd, has tabled a non-binding takeover offer to acquire ASX-listed rival Selfwealth on Friday at 17.5¢.
The offer represents a 25 per cent premium to Selfwealth’s last close price of 14¢ per share and a 27 per cent discount to its 52-week high of 24¢. Grant Samuel and Allens are on hand to advise Stake.
Stake co-founders Dan Silver (left) and Matt Leibowitz.
The bid comes with Selfwealth’s stock price under considerable pressure, sinking near 40 per cent over the past year. Its latest result shows trading revenues have fallen 39 per cent to $8.4 million as the heady highs of pandemic trading fall off.
While it delivered a maiden profit in financial year 2023, profitability is being driven by interest income on client cash balances which have been declining alongside rising interest rates as customers seek higher cash returns.
The $35.3 million market cap broker is without a permanent chief executive after Cath Whitaker’s sudden exit in July. Its board has also rotated following the exits of Rob Edgley, Huy Truong, Jodie Leonard, John O’Shaughnessy and Tam Vu.
Stake was co-founded in 2017 by former Optiver trader Matt Leibowitz and Dan Silver to give retail investors low-cost access to US equities, pioneering the model of charging no fees on US sharemarket trades in Australia. It’s since grown to be Australia’s third-largest online broker with a suite of products including US and ASX share trading and an SMSF platform.
SelfWealth boss Cath Whitaker vacated the top job suddenly in July. AFR
The broker has the backing of Tiger Global and DST Global
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