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YBR acquires mortgage manager

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— 1 minute read

Yellow Brick Road (YBR) has entered an agreement to acquire privately-owned mortgage manager and originator Resi Mortgage Corporation for $36 million.

In an ASX announcement, YBR said it has agreed to pay $28 million in cash at settlement and $5.5 million in fully paid ordinary YBR shares. 

The 7,857,144 shares to be issued by YBR are subject to a 12-months voluntary escrow with a deferred amount of up to $2.5 million in cash payable on the first anniversary of settlement. 

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The acquisition remains subject to YBR shareholders passing various approval resolutions required under the ASX listing rules and the Corporations Act. 

The settlement of the acquisition of Resi is expected to occur on 29 August 2014 if all conditions are satisfied. 

YBR company secretary Richard Shaw said Resi is one of the very few remaining non-bank lenders of scale not owned by a major four bank. 

“Resi has a network of franchises and territories throughout Australia, with a solid growth pipeline,” said Mr Shaw. 

YBR chairman Mark Bouris said the company looked forward to leveraging its marketing platforms to significantly increase Resi’s lead flow as part of its combined group.

Mr Bouris said the complementary skills across YBR, Vow Financial Holdings, acquired by YBR in May, and Resi will provide all three businesses with “unparalleled opportunities to build revenues and market position”. 

“The acquisition of Resi is another important milestone in our strategy to become a leader in the non-bank segment,” he said. 

 

 

YBR acquires mortgage manager
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