Fort Worth-based Cash America International Inc. said Oct. 22 its board of directors has approved the spin-off of its online financial services division, Enova International Inc., into a separate publicly traded company. Cash America and Enova will be separated through the distribution of 80 percent of the outstanding shares of Enova to holders of Cash America. The distribution is expected to occur on Nov. 13.
Cash America shareholders will receive 0.915 shares of Enova common stock for every one share of Cash America common stock held at the close of business on Nov. 3. Fractional shares of Enova common stock will not be distributed but will be aggregated and sold in the open market. The aggregate net proceeds of the sales will be distributed ratably in the form of cash payments to Cash America shareholders of record who would otherwise be entitled to receive a fractional share of Enova common stock. Following the distribution of Enova common stock, shares of common stock will be traded on the New York Stock Exchange under the symbol “ENVA.”
Since 2004, Enova has completed more than 27 million transactions and collected 12 terabytes of consumer behavior data. In 2013, Enova extended $2.6 billion in credit to borrowers in the United States, United Kingdom, Canada and Australia. No action is required by Cash America shareholders in order to receive shares of Enova common stock in the spin-off distribution. Cash America shareholders entitled to receive the dividend will receive a book-entry account statement reflecting their ownership of Enova common stock, or their brokerage account will be credited for the shares. As of Sept. 30, 2014, Cash America International Inc. operated 948 total locations offering specialty financial services to consumers, which included 863 lending locations in 21 states in the United States and 85 check cashing centers operating in 12 states in the U.S. Additionally, as of Sept. 30, Enova offered consumer loans over the Internet to customers in 34 states in the U.S. and in the United Kingdom, Australia, Canada, Brazil and China. Cash America International Inc. trades on the New York Stock Exchange under the symbol “CSH.”
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