Bank may be looking to buy out major aggregator

by Calida Smylie03 Mar 2014
Macquarie Group is said to be conducting due diligence on mortgage broker aggregation group Vow Financial, stirring ideas the company is expanding its clutch of mortgage groups.

Macquarie already owns almost 20% of Vow and is said to be running the numbers on buying the group, sources close to the reported negotiations told The AFR.

The Sydney-based bank re-entered the mortgage market last year, and quickly snapped up stakes in listed companies Yellow Brick Road and Homeloans.

In November, Macquarie also bought a 25% stake in privately-held broker aggregation group Connective, with more than 1900 member brokers.

A spokesman for Vow Financial told Australian Broker they were not in a position to comment on reports of a take-over.

“There are always many rumours about what’s happening in the market. There are negotiations in the industry that happen all the time…But Vow is not in a position to comment,” he said.

Australian Broker has seen an email which Vow CEO Tim Brown sent to his staff this morning.

"Vow receives offers from competitors and we also make offers for other businesses at time to time. This is part and parcel of every businesses strategy," he said.

"Each proposal is given due consideration by the board based on what is best for Vows future. Vow will not comment on speculation or rumours.

"If Vow was to accept an offer for its businesses or if the board of Vow issues a recommendation to its shareholders to accept an offer received from a party for their shares in Vow, we will communicate to our staff and brokers direct and not through the media."

Macquarie could not provide comment at time of print.

Vow administers an A$18.5 billion mortgage book and has partnerships with more than 700 mortgage and finance brokers.

At its third-quarter operational briefing in February, Macquarie said its Australian mortgage portfolio rose 8% to $15.8 billion, representing 1% of the local home loan market.

Macquarie also has a less than 10% stake in Perth-based broker aggregator group AFG, and a 17.5% holding in Bluestone Group, which re-entered the Australian market in the second half of last year.
 

COMMENTS

  • by Bd 3/03/2014 12:19:51 PM

    Custom equity group - built by brokers owned by brokers

  • by chrisc 3/03/2014 2:40:44 PM

    Banks/executive already own or partly own other lenders and aggregators; sit on the board of MFAA and other finance bodies; they dictate their terms to these oganisations and brokers and the consumer (the end liners - in wich other industry are we dicated to, as to how much we will/won't get paid and we have no say in it) bear the brunt of their empire building, increased market share, decreased compeititon with continuing low service levels. We lnow they are just out to make as much profit as they can - cn aford to buy it back if they lose it (they lost it for a reason so we are back to square one) - have said it years ago -will keep saying it - Banks should not be allowed to control and dictate to the market by allowng them to control every stage and area of the finance industry.....surely they must hold conflicts of interest with their positions across so many channels.

  • by SIDBROKER 4/03/2014 11:26:17 AM

    To CHRISC. But that why we have ACCC and ASIC is it not to make sure this sort of thing does not happen. Then again the banks have barristers and our money to fight them with and that won`t do will it. Mean while they are out having lunch and a laugh over a bottle of red.