Powered by MOMENTUM MEDIA
the adviser logo

Merger deal could see aggregator list on the ASX

by Reporter3 minute read

merge puzzle merge puzzle

The merger between an Australian bank and a major aggregator could see the latter list on the Australian Stock Exchange.

In a trading update last week, Kalgoorlie-based ADI Goldfields Money Limited advised shareholders that it had signed an agreement with Finsure to acquire 100 per cent of the diluted shares in Finsure via the issue of Goldfields Money shares.

The directors of Goldfields Money believe that the deal will be “transformational” for the bank and, if implemented, will deliver substantial value for shareholders.

Speaking to The Adviser, the co-founder and managing director of aggregator Finsure and 1300HomeLoan, John Kolenda, said: “We believe that a merger with Goldfields will achieve many strategic benefits and also allow us to achieve one of our goals in becoming a publicly listed company on the Australian Stock Exchange.

“The proposed merger will give Finsure greater opportunities to expand our product and service offerings to brokers. It also allows us to explore other acquisitions and improve our future growth prospects.”

Advertisement
Advertisement

However, Mr Kolenda said that, “given the nature of the proposed merger”, the process could take “several months”.

He added that the aggregator would continue to keep the industry and broker network updated on the progression of the deal.

Merger details

The key commercial terms of the proposed deal would see Goldfields Money merge with Finsure by acquiring 100 per cent of the diluted shares in Finsure via the issue of Goldfields Money shares.

Goldfields Money shares would be valued in the transaction at $1.50 per share.

If implemented, the merger would see Goldfields Money issue 40,750,000 shares to Finsure shareholders, comprising approximately 63 per cent of Goldfields Money on a diluted basis including Goldfields Money Performance Rights.

The new shares would be issued at $1.50 per share, valuing Finsure’s equity at around $61.1 million and the merged group at around $97.5 million.

The Goldfields Money board would continue to comprise a majority of independent directors, with Finsure shareholders entitled to nominate one Goldfields Money director (Mr Kolenda) at the invitation of the current Goldfields Money board.

The existing management would continue to be responsible for regulation, risk and compliance in relation to Goldfields Money’s banking licence.

Goldfields shareholders will be given the opportunity to cast a simple majority vote on the Finsure offer once the Merger Implementation Agreement is brought in on 22 December.

As at 30 June 2017, Finsure has a network of 1,200 loan writers across Australia and a historical book of approximately $26 billion.

Merger deal could see aggregator list on the ASX
merge puzzle
TheAdviser logo
merge puzzle

MORE FROM THE ADVISER

Mark hewitt

AFG GM to join MFAA board

Mark Hewitt, general manager, industry and partnership development at Australian Finance Group (AFG) will commence as...

READ MORE
Possibl co founders

Early commission payment loans open to full broker market

Following its launch of an early commission payment product to brokers using the effi platform, cash-flow solutions...

READ MORE
David Keeling

Grow expands structured finance, appoints senior partner

According to Grow Finance (Grow), David Keeling’s appointment, which commenced on 11 April, is part of a broader...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more