Yellow Brick Road has made an offer to buy out mortgage aggregator Vow Financial.
YBR announced on the ASX this morning that it has entered into an implementation deed with privately-owned Vow and subsequently made an offer to its 24 shareholders to acquire 100% of the company.
"The acquisition of Vow is consistent with our strategy to become a leader in the non-bank sector,” YBR executive chairman
Mark Bouris said.
“Vow will provide YBR with a new national distribution channel and business model, with its current access to over 700 mortgage broker groups. It is a profitable business that earns commissions from a growing loan book with a current total size of approximately $18 billion.”
The Vow board has unanimously accepted the offer, as has Vow CEO Tim Brown and largest shareholder Macquarie Bank. This makes up around 40% of Vow’s issued capital.
Vow management and staff are said to be supportive of the change in ownership, which is subject to various approvals by YBR shareholders too. A general meeting of YBR shareholders will be held mid-July.
