Updater’s shareholders say yes to leaving Australia
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Home relocation company Updater’s shareholders have “overwhelmingly” voted for it to delist from the ASX.
A fifth of the register wanted them to stay in Australia but 78 per cent said they wanted out.
The company (ASX:UPD) said in August it wanted to delist from the ASX and go private to “pursue its next phase of growth in the United States”.
Updater provides a website that lets Americans moving house update all their details and utilities in one place. Updater makes money by allowing third-party services such as insurance providers to use its app to offer their services.
Updater calls the concept “ReloTech” (relocation technology) in reference to similar segments such as FinTech and RegTech.
“Our market penetration in the US has resulted in Updater emerging as a market leader in the multi-billion dollar US relocation technology market,” Updater founder David Greenberg said in a statement at the time.
“Numerous financial investors and strategic parties have expressed significant interest in an investment in Updater as a private company,” the business told investors.
“Accordingly, we have received significant interest from a number of enthusiastic potential investors. The opportunity presented by this considerable investment interest makes delisting from the ASX a logical next step towards achieving our long-term vision for the company.
Mr Greenberg said on Friday their time on the ASX had been an “outstanding success” but they are ready for the next stage of corporate development and that lies in the US, where the business operates.
Shareholders have the option to stay in or accept a buyout, to be funded by cash reserves.
Not long after the vote, ASX-listed Ryder Capital (ASX:RYD) said is was staying in, believing a continued position in the company would be beneficial to their own shareholders.
Updater’s shares have rocketed since the $665 million company listed at the outset of 2016.
But they have dipped since the delisting announcement, trading at 99.5c on Friday.
Updater will be removed from the ASX on October 10.
The delisting decision came just before Updater posted a half-year loss blow-out by 158 per cent.
The loss grew from $US5.7 million to $US14.7 million.
Updater (ASX:UPD) said the half-year loss was due largely to personnel expenses.
But the accounts show a blow-out in general and administrative expenses, rising from $US1.9 million in last year’s half year results to $US9.2 million.