The Federal Court has approved a merger of an ASX-listed non-bank lender and one of Australia’s mortgage pioneers.
In July, Homeloans Limited informed the market of its plans to merge with securitisation pioneer and leading non-bank lender RESIMAC, in a deal that would create a significant mortgage lender with a combined portfolio in excess of $13 billion.
Following the approval by the two companies’ shareholders last week, court orders approving the scheme of arrangement were lodged with ASIC and made effective on Thursday (October 13).
The size of the non-bank lending giant now rivals some of Australia’s smaller banks.
RESIMAC shareholders will hold 72.5 per cent of the merged group while existing Homeloans shareholders will hold the remaining 27.5 per cent. However, the group’s majority shareholder is actually a fund manager based in the British Overseas Territory of Bermuda.
A September 16 Bermuda Stock Exchange trading update shows that Hamilton, Bermuda-based Somers Limited, a financial services investment holding company, acquired the majority stake in RESMIAC (approximately 79 per cent) from Ingot Capital Management for US$88.5 million ($116.3 million).
“This is a major investment for Somers and fits in with the stated strategy to make corporate investments and acquisitions in the financial services sector,” Somers chairman Warren McLeland said.
“The acquisition of RESIMAC will complement Somers' existing investments and the benefits from the acquisition will accrue to all Somers shareholders,” he said.
“Somers is acquiring a well-run, profitable business which will diversify Somers’ investments and significantly increase the scale of Somers.”
Homeloans chairman Rob Scott confirmed that Somers Limited is RESIMAC's largest shareholder and will acquire voting power of 58.9 per cent of the shares in Homeloans.
The ASX-listed company has declared a full-franked final dividend of two cents per share, however RESIMAC shareholders who will be issued with new Homeloans shares on October 25 as a result of the merger will not be entitled to this final dividend in respect of the new Homeloans shares.
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