Macquarie Bank buys major stake in YBR

by Mackenzie McCarty20 Dec 2012

Macquarie Bank has bought a substantial stake in Yellow Brick Road (YBR), just a day after Aussie Home Loans announced its major CBA take-over.

A statement released by YBR to the Australian Securities Exchange late yesterday shows Macquarie paid $6 million for 15 million shares at 40c - giving it 8.3% of the company.

Another 2.5 million shares, or 1.4%, were bought by Coolabah Ventures, a company controlled by YBR adviser Christopher Joye.

YBR chairman, Mark Bouris told The Australian reporters he hopes the agreement will give his company a competitive edge.

"This deal allows us to be more aggressive in offering the Macquarie products.”

He says the money raised will be used to increase the number of YBR branches and allow the company to take on more staff.

YBR is also backed by broadcasting heavyweight Nine Entertainment, which owned 19.9% of the company prior to yesterday’s deal.

Bouris told reporters he has already seen strong demand for the new mortgage products.

He says the company wrote $260 million in loans last month, and he expects this to rise to $340m for December.

The settlement with Macquarie and Coolabah is expected to be finalised by Monday, December 24.

 

COMMENTS

  • by Keith Bridges 20/12/2012 9:48:28 AM

    So now we know the "Yellow Brick Road" leads to Macquarie doorstep. Another broking house which canncot call its independent..

  • by Country Broker 20/12/2012 10:12:51 AM

    Makes sense, another independant is going going gone .

    at least they been open and said it will allow them to offer a more competative product , then we see them saying they will release a simple SMSF product , funded by Macquarie .

    This will be well and good until the next GFC , will Macquarie then leave the market like they did last time?

  • by Wilko 20/12/2012 10:16:00 AM

    Given one of their investors is not in the best situation (aka channel 9) none of Bouris is doing is surprising. Wizard all over again.