Powered by MOMENTUM MEDIA
subscribe to our newsletter
Goldfields and Finsure sign merger documentation

Goldfields and Finsure sign merger documentation

ASX-listed ADI Goldfields Money Limited and major aggregator Finsure have signed binding documentation ahead of a shareholder vote on the proposed merger.

An update on the ASX on Monday (15 January) outlined that Goldfields had signed a share sale and purchase agreement to merge with Finsure by acquiring 100 per cent of the diluted shares in Finsure via the issue of Goldfields Money shares (subject to the satisfaction of certain conditions).

Goldfields directors said they believe the merger would be “transformational” for the company and deliver the bank’s shareholders “substantial value” as it would result in the Kalgoorlie-based bank owning a “fast-growing national mortgage aggregation network and wholesale mortgage business”, which has scalability, diversified income streams and “material profitability”.

Advertisement
Advertisement

According to the ASX update, the merger would provide Finsure shareholders with shares totalling $61.12 million (40,750,000 shares at $1.50 per share).

This would bring the total value of the merged group to approximately $97.5 million, based on the agreed capital structure that includes conversion of convertible notes and shareholder loans, net debt of approximately $10.7 million and “completion of a trail book acquisition planned by Finsure” (expected to be complete in January 2018).

The board therefore unanimously recommended Goldfields Money shareholders to vote in favour of the Finsure transaction.

If approved by all necessary shareholders, the Federal Treasurer and relevant regulators, Finsure managing director John Kolenda would join the board of Goldfields Money.

The shareholder meeting and completion of the transaction is scheduled for March 2018.

[Related: Firstmac, Finsure and the penny stock from Kalgoorlie]

Goldfields and Finsure sign merger documentation
mortgagebusiness

 

Latest News

The federal opposition has released its response to the final report of the banking royal commission, agreeing to 75 of the 76 recommendatio...

A class action suit has been filed against the major bank for allegedly approving home loans outside serviceability. ...

In its update on the implementation of Commissioner Hayne’s recommendations, the corporate regulator has hinted that it is investigating...

FROM THE WEB

POST RC PANEL DISCUSSION ADDED

podcast

LATEST PODCAST: The current mindset of the mortgage industry

Is enough being done to ensure responsible lending?