Shares of SelfWealth more than doubled following the acquisition bids.
AxiCorp Financial Services, which operates a retail contracts for differences (CFDs) brokerage under the brand Axi, is interested in acquiring the Australian trading platform SelfWealth and has submitted a bid of 23 cents per share. This would value the deal at AUD 52 million (about USD 34 million).
Axi's latest bid challenges the interest of Bell Financial Group in SelfWealth, undercutting Bell's bid by 1 cent.
SelfWealth, a publicly traded company in Australia, saw its shares more than double over the past few days with the onset of the bidding war. Bell Financial's bid of 22 cents per share was already a premium over the company's 0.12 cents per share market value at Tuesday's market close.
"Axi has indicated that it is prepared to negotiate and sign a binding implementation deed in an expedited manner. The Axi proposal is not subject to due diligence or any financing conditions," the SelfWealth board informed its shareholders.
"SelfWealth shareholders do not need to take any action in relation to the Bell proposal or the Axi proposal. There is no certainty that either proposal will result in a binding transaction. SelfWealth will continue to keep shareholders informed about the proposals in accordance with its continuous disclosure obligations."
Finance Magnates reached out to Axi, but no response has been received as of press time.
SelfWealth, which promotes itself as "Australia's most popular low-cost trading platform," offers trading in shares listed on exchanges in Australia, the United States, and Hong Kong. It has about 129,000 active Australian investors and AUD 10.7 billion in funds under administration.
Founded in 2012, SelfWealth went public in 2017. In the fiscal year ending 30 June 2024, it generated a revenue of AUD 27.6 million, with a net profit of AUD 3.4 million.
Axi, meanwhile, offers CFDs trading and is led by CEO Rajesh Yohannan. The derivatives broker operates globally with licences in Australia, the UK, the UAE, St Vincent, and the Grenadines. Recently, Axi opened an office in India, which will serve as its technology and product centre.
Additionally, Axi is expanding its offerings, becoming one of the first CFD brokers to launch proprietary trading services. Unlike most in the prop trading industry, Axi offers live trading to prop traders and has raised questions about the sustainability of the demo account-based prop trading model.