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ISCOVER
By: Staff Reporter
An acquisition of non-bank lender Pepper Homeloans is expected to be finalised in the coming weeks.
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According to a report in The Australian Financial Review, the specialist lender’s majority stakeholders, Merill Lynch and Italy’s CIR SpA, are looking to exit the company.
It is understood that Pepper kicked off the sales process some months ago.
There is mounting speculation that a management buyout is a possibility, however, this is not the preferred option.
Sales documents show the lender had total loans under management of about $3.2 billion at 30 June 2009, while its originated loans amounted $1 billion.
The documents also show that Pepper Homeloans has a ‘normalised’ after tax profit of $10 million.
Sources close to the sale suggest the company’s preferred sale amount is $20 million.
