From the Wires
SAF Capital Management LLC calls on Cash America, Inc. Management to spin-off Enova Subsidiary.
By: Business Wire
Jan. 9, 2013 03:24 PM
SAF Value Fund LLC has acquired a minority stake in Cash America, Inc. (“Cash America” or the “Company”) common stock. SAF’s Managing Member (“SAF”) has initiated contact with Company management and seeks a collaborative dialogue in pursuing a dual mandate of corporate restructuring and optimization of the Company’s capital allocation strategy.
SAF believes that the Board of Director’s fiduciary duty should compel it to initiate the divestiture of the Company’s e-commerce subsidiary while implementing a new capital allocation methodology, including a material increase in share repurchases. SAF believes its views are congruent with the feelings of many Cash America shareholders, who seek to not only maximize shareholder value, but also to mitigate potential regulatory exposure stemming from the Company’s short-term single-payment lending activities.
SAF’s analysis indicates that Cash America’s common equity is significantly undervalued and that the implementation of SAF’s proposals would unlock the currently hidden value of the Company’s e-commerce subsidiary, allow the market to more accurately appraise the worth of the Company’s retail operation and also increase the Company’s returns on invested capital.
Cash America shareholders are encouraged to visit: ShareholderValueforCashamerica.com for more information and may direct questions to: inquiries@ShareholderValueforCashAmerica.com.
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