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- Cash Converters (CCV) is acquiring the remaining 75 per cent interest in its namesake New Zealand master franchisor
- The secondhand retail company acquired the initial 25 per cent stake in Cash Converters New Zealand in 2014
- It’s now acquiring full ownership to fully integrate the brand, stores and people in NZ into its wider operation
- Cash Converters said it would spend up to $15.5 million on the acquisition, which it plans to fund through existing reserves
- Company shares are down 4.17 per cent to trade at 23 cents at 1:42 pm AEDT
Cash Converters (CCV) has announced its plans to acquire full ownership of its namesake New Zealand master franchisor.
In 2014, the company acquired a 25 per cent stake in the New Zealand enterprise, which consists of 22 stores, of which half are franchised and the other half are owned and operated by the master franchisor.
Now almost a decade later, Cash Converters is acquiring the other 75 per cent interest for up to $15.5 million.
Managing Director Sam Budiselik said the acquisition would allow the company to fully integrate the Cash Converters brand, stores and people in New Zealand into the wider corporate operation.
“We continue to evaluate opportunities to invest our capital in a sensible way, to generate value for our shareholders,” Mr Budiselik said.
“Welcoming an experienced management team that will remain with the business now enables us to continue to build upon a strong and growing franchise in New Zealand, together with our franchise and corporate store colleagues.”
Cash Converters said it would fund the 75 per cent acquisition through its existing cash reserves. The transaction is expected to be completed before the end of the year.
Company shares were down 4.17 per cent to trade at 23 cents at 1:42 pm AEDT.
