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.