Yellow Brick Road could be on the path to a merger deal with a major non-bank lender.
The Australian Financial Review has reported YBR is believed to be in talks with Homeloans Ltd
regarding a merger that could create a company worth more than $220m. The AFR has claimed the franchise brokerage is also eyeing off other deals to increase its footprint in the mortgage broking sector.
While The AFR touted the acquisition of Resimac
's State Custodians and Finsure as a possible next move for YBR, Resimac
COO Allan Savins categorically stated to Australian Broker that Resimac
had not engaged in any discussions with YBR.
"In fact, Resimac
Group is an active acquirer themselves, and continues to look for strategic acquisition opportunities after successful purchasing RHG recently," he said.
YBR would not confirm or deny any discussions with Homeloans, instead saying that the company often held acquisition discussions with other companies.
"The company is often in discussions with many parties on a range of matters. Any current discussions are incomplete and strictly confidential. No agreements have been entered into which would require disclosure to the market," YBR said in an ASX release.
Homeloans released a similar communique to the market, saying it also regularly holds discussions "with various
industry participants regarding a range of potential
transactions, at both a corporate and asset level".