Listed mortgage and financial services group Firstfolio has announced plans to acquire Apple Group, one of the company’s major wholesale mortgage distribution and financial services partners.
The deal follows a joint venture agreement signed by both companies in March 2008, under which Apple was the exclusive distributor of Firstfolio’s mortgage products and services.
Under the terms of the proposed transaction, Firstfolio would pay $4.25 million to acquire 100 per cent of Apple Group’s assets, including its $600 million loan book.
The agreement remains subject to due diligence being completed, which is scheduled to be finalised within the next 30 working days.
Firstfolio chief executive Mark Forsyth said over the past 15 years, the owners of Apple Group have built a client portfolio of almost 6000 small and medium-sized businesses and high net worth individuals.
“Since the Apple partnership was signed two years ago, they have gone from strength to strength by successfully diversifying earnings, expanding the loan portfolio and settling loans in excess of $200 million per annum,” Forsyth said.
“Under our ownership and with secure access to a greater scale of wholesale funding, we will look to accelerate Apple’s expansion ambitions across Victoria, Queensland and New South Wales.”
As part of the transaction, Apple Group directors Rob De Soza and Gary Cumberbatch would join Firstfolio’s executive committee.
Following the completion of the acquisition, they would also receive an allotment of performance-based shares linked to the company’s performance during the first 12 months.
