Yellow Brick Road yesterday announced that it has received irrevocable acceptances from all 24 shareholders in Vow Financial.
Due to the success of the offers, no drag-along or compulsory acquisition procedures will be necessary, according to a YBR ASX statement.
"In aggregate, the offers valued Vow at $17,600,000,” the ASX statement said.
“We are very pleased to welcome the Vow shareholders to the YBR register and we share their excitement as to the combined group’s future,” YBR executive chairman Mark Bouris said.
“We are also proud to welcome the Vow brokers into our network and we look forward to working with them to build revenues and growth opportunities for the future,” Mr Bouris said.
“We do not intend to disturb the operational structure of Vow,” he added.
“It will operate as a separate division within the YBR group, with Tim Brown remaining as its CEO.”
Vow Financial chairman Dr Peter Neustadt welcomed the strategic move for the Vow business.
“YBR’s marketing and product manufacturing capabilities and partners will be key assets in growing Vow’s and the Vow brokers’ mortgage volumes, as well as introducing YBR’s wealth management products and experience,” he said.
The offers remain subject to a number of conditions precedent, including YBR shareholders passing various approval resolutions required under the ASX Listing Rules and the Corporations Act.
A general meeting of YBR shareholders is expected to be convened for mid-July 2014 to consider these resolutions.
A notice of meeting and accompanying documents will be forwarded to YBR shareholders shortly.
“The retention of all of Vow’s existing staff should lead to a smooth transition to the new ownership by YBR and to the acceptance by brokers and lenders of such new ownership,” Vow chief executive Tim Brown said.
The news comes after Mortgage Business reported on May 7 that the acquisition had been approved by Macquarie Bank and Vow chief executive Tim Brown.