the adviser logo

Pepper Homeloans for sale

by Staff Reporter7 minute read
The Adviser

By: Staff Reporter

An acquisition of non-bank lender Pepper Homeloans is expected to be finalised in the coming weeks.

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.

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