Fox Corp. To Buy Credible Labs

(RTTNews) - Fox Corp. (FOXA, FOX) said that it agreed to buy 67 percent of the equity in U.S.-based consumer lender Credible Labs Inc. (CRD.AX) for about US$265 million. FOX will commit up to US$75 million of growth capital to Credible over about two years.

The price per CHESS Depositary Interests of A$2.21 in cash represented a 31% premium to Credible's closing price on the day prior to Fox's initial May 29 proposal.

Fox expects to close the deal in the fourth quarter of this year.

As part of the transaction, Credible Founder and Chief Executive Officer, Stephen Dash, will exchange shares equal to 33% of Credible's outstanding common stock into units of a newly created FOX subsidiary. Dash will continue to serve as CEO of Credible, Fox said.

The deal will allow Credible Labs to consider and negotiate alternative transactions. Credible Labs could terminate the deal to accept a proposal for an alternative transaction, and pay a break fee of US$4.0 million in certain circumstances.

Meanwhile, Credible Labs's board has determined that the deal with Fox is in the best interests of the company and its shareholders, in the absence of a superior proposal.