Yellow Brick Road has moved closer to acquiring Vow Financial after winning the approval of Macquarie Bank and Vow chief executive Tim Brown.
The news comes after last week’s announcement that YBR was in exclusive talks with Vow.
Yellow Brick Road announced yesterday that the group has made offers to each of Vow’s 24 shareholders to acquire 100 per cent of the aggregator.
“The Vow board has unanimously resolved to recommend acceptance of the offers by all Vow shareholders,” the statement said.
“In addition, the directors of Vow have agreed to accept the offers in regards to all Vow shares that they own or control.
“Tim Brown, the chief executive of Vow, and Macquarie Bank, the largest shareholder of Vow, have also accepted their respective offers.
“In aggregate, these acceptances amount to approximately 40 per cent of Vow’s issued capital. Additionally, the Vow management and staff are supportive of the change of ownership.”
The deal also has to be approved by Yellow Brick Road shareholders, who are expected to meet in mid-July to consider the proposal.
Yellow Brick Road executive chairman Mark Bouris said the proposed acquisition was consistent with the company’s strategy to become a leader in the non-bank sector.
Vow will provide Yellow Brick Road with a new national distribution channel and a growing loan book, Mr Bouris said.