KUALA LUMPUR (April 12): N2N Connect Bhd is acquiring a 28% stake in Australia's first hybrid marketplace lender for A$2.8 million (RM8.33 million) cash.

The ACE Market-listed company has signed a subscription agreement with OurMoneyMarket Holdings Pty Ltd to buy the 28% stake in the company, which utilises the latest peer-to-peer lending technology in combination with traditional structured finance methods to fund high-yielding unsecured personal loans.

"OurMoneyMarket intends to redefine the role that marketplace lending plays in Australian financial services with a focus on collaborating with, rather than competing against, traditional lenders," said N2N in a filing with Bursa Malaysia today.

"OurMoneyMarket's platform provides borrowers with a quick and simple, 100% online application process while awarding good borrowers with lower rates than traditional lenders. Its advanced investor platform applies securitisation best practice methods to provide investors with detailed portfolio analytics, while ensuring a robust foundation to scale its operations.

"The investor platform is open to both retail and institutional investors, who can now access an alternative asset class to traditional equities and bonds. Investors using the platform are able to invest as little as A$50 in any single loan," it added.

Completion of the subscription of the subscription shares is conditional on N2N having obtained all the necessary approvals for the transaction and the company providing notification in writing to OurMoneyMarket that all the necessary approvals have been obtained prior to conditions precedent's end date.

"The acquisition is not expected to have any material effect on the group's earnings and net assets for the financial year ending Dec 31, 2018," said N2N.

N2N shares closed 3.5 sen or 4.17% higher at 87.5 sen, with 3.36 million shares done, bringing a market capitalisation of RM470.68 million.