Credible Labs’ investors back Fox’s $585m bid

Credible Labs’ investors have overwhelmingly backed a proposed $585m takeover bid from Fox Corporation.

Credible LAbes CEO Stephen Dash. Picture: Jane Dempster.

Investors in San Francisco-based fintech Credible Labs have overwhelmingly backed a proposed $585m takeover bid from Fox Corporation, clearing the way for Fox to advance its strategy in the fast-growing marketplace of digital consumer finance.

Credible shareholders voted at a special meeting in Sydney on Tuesday to approve the deal, after the board unanimously recommended investors vote for the proposal.

Other long-term Credible shareholders including Regal, Carthona and Alceon Group had previously welcomed the transaction.

Under laws in Delaware, where Credible is domiciled, only a simple majority (50 per cent) of shareholders was required to support the deal for it to proceed.

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Commenting on the vote, Fox Corporation executive chairman and chief executive officer, Lachlan Murdoch said in a statement: “Today Credible’s stockholders overwhelmingly supported Fox Corporation’s proposed merger. This transaction advances Fox’s innovative digital strategy focused on meaningful engagement with our large audiences.

“When combined with Credible’s industry-leading user experience, the strength and breadth of the Fox brands offer a unique opportunity to deliver greater impact and scale in the fast-growing marketplace of digital consumer finance.

“We look forward to the partnership with [Credible chief executive] Stephen Dash and his team.”

Only regulatory approval is now required to complate the deal.

As part of the deal, Fox will inject $US75m ($110m) into Credible, which was the biggest technology IPO on the ASX in 2017 and which counts industry super fund giant Hostplus, Aussie Home Loans founder John Symond and former Seven executive Peter Gammell among its backers.

Under the Fox deal, Mr Dash will be paid $55.25m for part of his 44.7 per cent stake in Credible and be left with a 33 per cent shareholding in the merged group, worth about $195m.

The Credible Labs deal is Fox Corp’s first move into the booming fintech sector.

Credible initially made its name in the higher education sector in the US, matching students with loan providers in an online environment.

Last year it moved into mortgage refinancing and has since expanded that product into 37 states, with six lenders, and added a home purchasing mortgage offering. The group also recently struck a trial partnership with Realtor.com, the second-biggest player in the online property space in the US.

Billionaire investor Alex Waislitz, whose listed Thorney Technologies holds just under 4 per cent of Credible, had previously questioned the Fox offer price of $2.21. Thorney abstained from voting.

“Notwithstanding that Credible has been a very successful investment outcome for Thorney and other shareholders, we remain of the view that shareholders would have done even better if Credible had remained a public company,’’ Mr Waislitz said after Tuesday’s shareholder vote.

Fox Corp and The Australian’s parent News Corp share common ownership.