• $25m equity raising via placement and entitlement offer
• Acquisition of 29 Australian franchise stores for $37m
• Acquisition expected to be earnings accretive in first year

Cash Converters International Limited (ASX:CCV) has announced the launch of a fully underwritten $25m equity raising to fund the proposed acquisition of a network of 29 Australian franchise stores for $37 million. The equity raising will be conducted through a $5m placement and a $20m partially underwritten 1-for-9.57 accelerated non-renounceable entitlement offer. Cash Converters' largest shareholder, EZCORP, has committed to taking up its full entitlement and partially sub-underwriting the retail entitlement offer. The proposed acquisition is expected to accelerate Cash Converters' growth strategy by expanding its Australian corporate store footprint from 92 to 121 stores, provide a stronger corporate store presence on the East Coast, and unlock retail and lending cross-sell and synergies. The acquisition is forecast to be earnings accretive in the first full year of Cash Converters' ownership. The equity raising funds will also be used to pay costs associated with the equity raising and proposed acquisition. In circumstances where the proposed acquisition does not complete, Cash Converters will consider alternative uses for the funds, including towards future store acquisitions.

The proposed acquisition is forecast to be earnings per share (EPS) accretive in the first full year of Cash Converters' ownership.