Leading non-bank lenders combine forces
Two major non-bank lenders have announced a merger they say will increase their scale and growth opportunities.
Non-bank lenders RESIMAC and Homeloans Ltd have entered into a Scheme Implementation Agreement (SIA) which will see the two lenders merge, with RESIMAC shareholders holding 72.5% of the merged group and Homeloans shareholders holding 27.5%.
Homelands chairman Robert Scott said the deal would represent “a significant step forward” for Homeloans’ growth strategy.
“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, product manufacturing and development capabilities,” Scott said.
The merged group will create a business with a loan portfolio in excess of $13 billion. The deal will see Homeloans remain a consumer-facing brand, while growing its distribution and wholesale funding capacities, Scott suggested.
“This allows the merged group to have both a strong and diversified distribution and funding capability which will allow it to pursue additional growth opportunities in the Australian and New Zealand markets and be in a more robust position to manage any future changes to the regulatory environment,” he said.
RESIMAC CEO Warren McLeleand will be appointed as managing director of the merged group.