Will Vow brokers have to offer YBR products?

by Calida Smylie21 May 2014
Yellow Brick Road is in the final stages of acquiring aggregator Vow Financial – but the question on many brokers’ lips is whether Vow brokers will be forced to offer YBR’s white label products.

It was announced on the ASX on Monday that all 24 of Vow’s shareholders accepted YBR’s offer to buy the mortgage aggregator, valued at $17.6 million.

Vow will add $18.5 billion worth of mortgages to YBR's $2.7 billion book – a boost of nearly 700%. 

YBR executive chairman Mark Bouris said he was “proud to welcome the Vow brokers into our network” and looks forward to working with them to build revenue and growth opportunities in the future.

But will Vow brokers be forced to offer YBR products, or will they get an incentive to do so?

Both companies are tight-lipped on the issue.

A Vow spokesman declined to comment and a YBR spokeswoman said it was too “forward-thinking” to discuss that yet.

“We can’t think about that sort of thing until everything has been finalised.”

The offer remains subject to a number of conditions, including YBR shareholders passing various approval resolutions required under the ASX listing rules and the Corporations Act.

A general meeting of YBR shareholders is expected to take place mid-July, with the acquisition expected to be completed on 31 July.

Bouris said in the ASX statement that YBR “does not intend to disturb the operational structure” of Vow, which will be a separate division within the YBR group and headed by current CEO Tim Brown.


YBR announces merger offer

Vow acquisition boosts YBR's book by nearly 700%