Homeloans has agreed to merge with RESIMAC Ltd. to createone of Australia's largest nonbank lenders.
Under the agreement, Homeloans will merge with RESIMAC byissuing 285,380,042 new Homeloans shares to RESIMAC shareholders, according to aJuly 20 release. Homeloans will also acquire all of the shares in RESIMAC.
Upon completion of the deal, RESIMAC shareholders will hold72.5% of the merged group, while existing Homeloans shareholders will hold theremaining 27.5%.
The merged entity will have a combined loan portfolio inexcess of A$13 billion, as of June 30.
Warren McLeland, currently executive chairman and CEO ofRESIMAC, will be appointed as managing director of the merged group. ScottMcWilliam, current CEO of Homeloans, will be appointed as joint deputy managingdirector with Mary Ploughman, RESIMAC's executive director of securitization.
A new independent chairman will be appointed after thecompletion of the merger.
The implementation of the merger agreement is expected tooccur in late October, pending shareholder approval.
As of July 19, US$1was equivalent to A$1.33.