Access Financial Services Limited has rebufffed a request for talks by Dolla Financial, which is contemplating a takeover of its bigger rival.
Access says its board “is not soliciting offers from any entity to sell” the firm, it said in an August 17 letter to Dolla.
“Your letter of August 11, 2022 did not provide sufficient information to enable shareholders of Access to consider the potential transaction and therefore cannot be deemed as a serious expression of interest,” it said.
It noted, however, that if Dolla Financial Services were to make “a considered offer to acquire the shares of Access”, the board would be obligated to put the matter before its shareholders, as per market takeover rules, Executive Chairman Marcus James indicated in his response to Dolla.
Sources say, however, that Dolla has not given up on its interest and is currently contemplating a hostile takeover that includes winning over large shareholders.
The Junior Market Rules set out the steps that must be taken in the case of a takeover, and stipulates that “any offer must, in the first instance, be put forward in writing by the offeror company to the Board of Directors of the offeree company, or to the participating voting shareholders of the offeree company”.
Dolla Financial Services Limited, which is controlled by First Rock Group, wrote to Access Financial on August 11, expressing interest in exploring a full takeover.
Dolla CEO Kadeen Mairs declined to comment on Access’ rebuff, but noted that his company was in acquisition mode and had the necessary financial backing to go after Dolla or other targets.
Calls to James, who is also the founder of Access Financial, went unanswered.