Two leading non-bank lenders – Homeloans Limited and Resimac
– have announced a major merger deal.
Homeloans Limited has released a statement announcing it has entered into a Scheme Implementation Agreement (SIA) with Resimac
, under which Homeloans will merge with Resimac through the issue of new Homeloans shares to Resimac shareholders and the acquisition by Homeloans of all of the shares in Resimac.
The SIA will merge the Homeloans brand, existing wholesale funding arrangements, and third party broker relationships, with Resimac’s established securitisation capabilities, strong product development and distribution channels.
Homeloans said the merger will create one of Australia’s largest non-bank lenders with a combined loan portfolio of over $13 billion, and combined new originations exceeding $3 billion in the 12 months to 30 June 2016.
“Entering into binding documentation in relation to the Transaction represents a significant step forward in the realisation of Homeloans’ growth strategy and in the Board’s opinion delivers the best solution for all stakeholders,” Homeloans chairman, Robert Scott said.
“Homeloans and Resimac have highly complementary businesses and strategies; Homeloans has a strong brand in the Australian mortgage industry and a national distribution network, while Resimac has well established securitisation and product development capabilities.”
It is expected that upon completion of the transaction, existing Resimac shareholders will hold 72.5% of the Merged Group and existing Homeloans shareholders will hold 27.5% of the Merged Group.
Warren McLeland, the current executive chairman and CEO of Resimac, said he was excited about the opportunities that the union would bring.
“We are delighted to be merging with Homeloans and the Transaction presents a compelling value proposition for shareholders through combining Resimac’s funding capabilities with Homeloans distribution expertise, as well as providing synergies through the integration of the businesses’ operations,” McLeland said.
McLeland is to be appointed as managing director of the Merged Group, with Scott McWilliam, the current CEO of Homeloans, to be appointed joint deputy managing director along with Mary Ploughman, Resimac’s executive director of securitisation.