ARC Funds Limited (ASX:ARC) Announces Intention to Acquire Remaining Shares in TTDS
Offer Details
ARC Funds Limited (ASX:ARC) intends to make a scrip offer for the remaining 36.51% shares in The Term Deposit Shop Pty Ltd (TTDS), totaling 548,128 shares. The consideration will be in the form of new ARC shares valued at 11.5 cents each, matching the recent placement price announced on 12 May 2025. Each TTDS minority shareholder will receive 21.72 ARC shares for every 1 Target Share held.
Strategic Rationale
The successful acquisition will allow ARC to fully implement its growth strategy and increase Funds under Management from over $530 million. TTDS has demonstrated a compound annual growth rate of 42.8% over the past six years. ARC aims to leverage TTDS’s distribution capabilities and client base as part of its multi-affiliate platform strategy.
Shareholder Approval
The issuance of ARC shares is conditional on shareholder approval at an upcoming Extraordinary General Meeting scheduled for early August 2025.
Executive Comments
ARC Managing Director Scott Beeton commented, “This move is consistent with our objective to own 100% of TTDS. We believe this business has significant growth opportunities and will benefit from further investment in marketing and distribution to grow funds and also provide a pathway for the distribution of additional income products over time. We are pleased to offer the other shareholders of TTDS the ability to swap into ARC shares and to potentially benefit from any future value created as the business grows. TTDS represents the start of our growth journey and we look forward to providing shareholders with updates on our progress.”
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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