Key points
- CL8 Holdings merges Carly car subscription business with Carbar
- Merged group to be headed by Carbar, CL8 to hold shares in Carbar
- CL8 to continue as ASX-listed company, seek new growth opportunities
Full summary
CL8 Holdings Limited (ASX: CL8) has announced the completion of a merger transaction, where it has sold all shares in its Carly car subscription business operating entities to Carbar Holdings Pty Ltd. The merger combines two of Australia's largest and original car subscription platforms. Through the transaction, CL8 will hold shares in Carbar, which will be the head company of the merged group. The merger was approved by CL8 shareholders at the 2024 Annual General Meeting. CL8 intends to continue holding the shares in Carbar to gain future appreciation of value and will remain an ASX-listed company, seeking other opportunities to deliver growth to shareholders following the completion of the transaction. The cash consideration from the transaction will be used to support CL8's operations as it pursues new growth opportunities. The company has also reduced its overheads to a level consistent with its market capitalization and operations.
Outlook
CL8 intends to continue holding shares in the merged Carbar group to gain future appreciation of value, and will seek other opportunities to deliver growth to shareholders as an ASX-listed company.