Cash Converters, EZCORP deal axed on proposed government reforms


The government's intends to introduce tougher guidelines on payday lenders have cost cash that is perth-based a $70 million deal.

Cash Converters late yesterday announced that worldwide pawn and payday lender, and major shareholder, EZCORP had ended an understanding to get a managing 53 per cent desire for the Perth business.

Beneath the deal, very first flagged in March, EZCORP would be to purchase around 76.6 million money Converters at 91c each to raise its existing shareholding from 32.76 %.

Information regarding the termination saw money Converters stocks plunge 40 percent this early morning to a decreased of 39.5c before settling at 47c at 1228 AWST.

“EZCORP has had this choice in light of this statement because of the Federal that is australian Government it promises to amend the nationwide credit rating Protection Act also to look for to introduce strict caps on charges and prices for micro-lenders,” Cash Converters stated when you look at the declaration.

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