ASX 200 (XJO) drops, City Chic (ASX:CCX) shares down

The ASX 200 (ASX: XJO) is down 0.6% so far today with investors selling off a number of shares.

The worst declines

Two of the worst declines in the ASX 200 are resource businesses. The Mineral Resources Limited (ASX: MIN) share price is down 6% and the Fortescue Metals Group Limited (ASX: FMG) share price is down 4%.

The Breville Group Ltd (ASX: BRG) share price is down around 5%. Shopping centre Unibail-Rodamco-Westfield (ASX: URW) shares are down 3.75% and the Pro Medicus Limited (ASX: PME) share price is down 3.5%.

City Chic Collective Ltd (ASX: CCX)

The City Chic share price is down 7.7% after losing out on a potential acquisition.

City Chic said that it had not been successful in winning the court-run auction for the eCommerce assets of Catherines which are being sold by Ascena Retail as part of a bankruptcy process.

On 24 July 2020 City Chic told the ASX it had been nominated as the stalking horse bidder, but it still had to go through an auction process.

That auction took place on 16 September 2020 and City Chic wasn’t the highest bidder.

City Chic said that despite the strategic merits of the transaction, the winning bid of US$40.8 million was above City Chic’s assessment of the value of those assets. The board said it maintains a disciplined approach to ‘inorganic’ growth, ensuring capital is deployed in line with its growth strategy and which enhances value for shareholders.

Netwealth Group Ltd (ASX: NWL)

Netwealth told investors today that it’s buying an initial 25% stake of Xeppo and will also be partnering with the fintech. The company has an option to increase its investment to 50% of Xeppo.

What is Xeppo? Netwealth said it specialises in connecting, matching and reconciling data from a wide range of sources to support the wealth management, accounting, SMSF administration and mortgage industries.

There are four key areas where Xeppo helps people.

It has tools and reporting to provide licensee and practice management insights. It has customer relationship management (CRM), workflow and marketing capabilities. Technology connects to a broad range of existing specialist systems to obtain, consolidate and manage data. Finally, its applications leverage a single “source of truth” for the benefit of the practice and its clients.

Netwealth also said that it will expand its current integrations to support two-way data feeds between accounting systems such as Xero Limited (ASX: XRO) and MYOB, SMSF software like BGL and Class Ltd (ASX: CL1) and financial planning software including Iress Ltd (ASX: IRE) and Midwinter.

Netwealth said that the investment isn’t initially financially material. However, it was enable and accelerate a number of key initiatives. The company is also hoping the partnership will create a unique and market-leading proposition for multi-disciplinary and integrated wealth practices.

Other news

The team over at Rask Media have covered the rest of today’s news, so make sure you head over there for more ASX share market coverage.

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