AxiCorp Makes Bid To Acquire Australian Trading Platform SelfWealth
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AxiCorp Financial Services, a company that runs a retail contract for differences (CFDs) brokerage under the brand name Axi, has shown interest in buying the Australian trading platform SelfWealth. According to a recent report, Axi submitted a bid of 23 cents per share, which would make the deal worth AUD 52 million, or about USD 34 million.
This new bid by Axi puts pressure on Bell Financial Group, which is also interested in acquiring SelfWealth. Axi’s offer is 1 cent higher than Bell’s bid, which stands at 22 cents per share.
The increased interest has caused SelfWealth’s stock price to rise sharply, with its shares more than doubling in recent days as the bidding war heats up.
Axi Aims To Move Quickly With SelfWealth Acquisition Offer
According to the SelfWealth board, Axi has shown that it is ready to move quickly and negotiate a deal. Axi’s offer is not dependent on any financing conditions or due diligence, the board revealed.
The firm also stated that shareholders do not need to take any action regarding either the Bell or Axi proposal for now. The board added that there is no guarantee that either offer would lead to a final agreement.
SelfWealth would continue to update its shareholders with information about both proposals, as required by its continuous disclosure obligations.
SelfWealth, which calls itself “Australia’s most popular low-cost trading platform,” allows people to trade shares listed on exchanges in Australia, the United States, and Hong Kong.
Axi Expands Global Presence And Challenges Bell Financial In SelfWealth Bid
According to the latest report, the company has around 129,000 active Australian investors and manages AUD 10.7 billion in funds. It went public in 2017 and reported a revenue of AUD 27.6 million and a net profit of AUD 3.4 million for the fiscal year ending June 30, 2024.
On the other hand, Axi, a global CFDs broker, is led by CEO Rajesh Yohannan. Axi has licenses to operate in Australia, the UK, the UAE, St Vincent, and the Grenadines. Recently, Axi opened an office in India, which will serve as the company’s technology and product center.
Axi is also expanding its services and becoming one of the first CFD brokers to offer proprietary trading services. The company has introduced live trading for prop traders, which raises questions about the traditional demo account-based model used by many in the industry, according to the report.
As the bidding competition between Axi and Bell Financial continues, both companies have shown interest in what they see as an opportunity to expand their reach in the trading platform market. However, the final decision on the offer remains to be seen, with no binding transaction confirmed yet.
