Gumtree to sell Hot Copper to UK-based ADVFN
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The news: Gumtree Australia has entered a binding share purchase agreement to sell its capital markets business, consisting of HotCopper and Canadian financial news hub StockHouse, to UK-based financial data website operator ADVFN.
The numbers: The sale will generate $2 million in cash for Gumtree, before transaction costs, and reduce the group’s overall debt by $4.8 million.
The deal consists of a $6.8 million enterprise value payable upfront in cash, repayment of outstanding shareholder loans totalling $2.8 million, repayment of $750,000 towards Gumtree’s outstanding Commonwealth Bank facility and the transfer of a $1.3m loan with Royal Bank of Canada to ADVFN.
The context: The deal is expected to be completed on 30 June 2025.
Gumtree also highlighted that a total of 14 parties reviewed the Capital Markets Business and received three providing non-binding conditional expressions of interest for board consideration.
ADVFN was selected by the board “on the basis of the value and its belief that it would achieve the best potential outcome for all stakeholders in an acceptable timeframe”, according to a statement to the exchange.
After receiving the third party approaches, the board initiated a strategic review which determined a sale was in the long-term interests of shareholders and the Gumtree Group business.
What they said: “As part of our ongoing transformation, we continue to streamline operations to focus on our core strengths in advertising and classifieds, and to exit businesses with a higher capital requirement,” Gumtree Group managing director Tommy Logtenberg said.
The source: ASX
