Finbond buys stake in Blake Enterprises
Latest acquisition increases short-term lender’s presence to 223 branches across 16 states in the US
Financial services group Finbond shows no signs of slowing its expansion into North America, announcing on Wednesday that it had acquired a 75% share in US-based short-term unsecured lender Blake Enterprises. The $9.6m (R129.6m) purchase follows the group’s eight North American acquisitions in 2016, in line with its ambition to become the leading short-term lender on that continent. Following the Blake Enterprises transaction, about 60% to 70% of Finbond’s earnings would be denominated in US dollars. The intention was to grow this to 80% to 90% in three to five years, the group said. Finbond might consider a rights issue to fund its expansion, although this was not on the cards, CEO Willie van Aardt said. Finbond raised R1.1bn from shareholders in a rights issue in 2016, acquiring 171 short-term lending branches in Canada and the US. The group’s target for North American earnings was aggressive, AlphaWealth fund manager Keith McLachlan said. "Finbond are betting the house on their A...
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