Nov. 5, 2009 (PR Newswire) --
AUSTIN, Texas, Nov. 5 /PRNewswire-FirstCall/ -- EZCORP, Inc. (Nasdaq: EZPW) announced today that it has completed its acquisition of 108,218,000 newly issued ordinary shares of Cash Converters International Limited, a public company headquartered in Perth, Australia. EZCORP paid AUS $0.50 per share, for a total investment of AUS $54,109,000 (approximately $49.4 million U.S.), and now owns approximately 30% of the outstanding ordinary shares of Cash Converters. The Cash Converters shares are listed on the Australian Stock Exchange (symbol, "CCV") and the London Stock Exchange (symbol, "CCVU"). On November 4, 2009, the closing sales price on the Australian Stock Exchange was AUS $0.54. Completion of the investment follows approval of the transaction by the shareholders of Cash Converters at a general meeting of shareholders held on October 29 in Perth.
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Cash Converters franchises and operates a worldwide network of about 500 financial services and retail stores, which provide pawn loans, short-term unsecured loans, and other consumer finance products, and buy and sell used merchandise. Cash Converters opened its first retail outlet in 1984 and has been franchising stores worldwide for over twenty years. Cash Converters has developed a globally recognized brand, has successfully expanded their international presence, and has introduced a number of innovative financial products and services, most recently short-term secured and unsecured consumer loans. Cash Converters now owns and operates 17 locations in Australia and 21 locations in the United Kingdom, and has more than 450 franchised stores in 21 countries, including 119 in Australia, 116 in the United Kingdom and significant presences in Spain, South Africa and France. During the past several years, Cash Converters has been buying back franchised locations and converting them into company operated stores. The proceeds of the EZCORP investment will be used to accelerate this buy back activity, as well as increase the Cash Converters portfolio of short-term consumer loans in Australia and the U.K.
The terms of the investment limit the size of the Cash Converters board of directors to a total of five members and entitle EZCORP to nominate two of those five directors. In connection with completion of the investment, William C. Love and Joseph J. Beal, both members of the EZCORP board of directors, have been appointed to serve on the Cash Converters board. The other members of the Cash Converters board are Reginald Webb (Non-Executive Chairman), Peter Cumins (Managing Director of Cash Converters) and John Yeudall (an independent director).
