Powered by MOMENTUM MEDIA
subscribe to our newsletter
YBR acquires Resi

YBR acquires Resi

Yellow Brick Road today announced that it has entered into a conditional agreement to acquire mortgage manager and originator RESI Mortgage Corporation Pty Ltd.

The news comes after YBR’s acquisition of Vow Financial on May 19.

YBR executive chairman Mark Bouris said the acquisition of Resi is another important milestone in YBR's strategy to become a leader in the ‘non-bank segment'.

Mr Bouris added that Resi will provide YBR with enhanced scale and national presence in its mortgage distribution.

The aggregate consideration agreed to be paid for Resi is $36 million, with $28 million payable in cash at settlement.

The issue on settlement of $5.5 million in fully paid ordinary shares in YBR (YBR Shares), at an agreed issue price of $0.70 each, being a total of 7,857,144 YBR Shares.

The 7,857,144 YBR Shares to be issued will be subject to a 12-month voluntary escrow, and subject to satisfying certain earn-out conditions, a deferred amount of up to $2.5 million in cash payable on the first anniversary of settlement.

Resi has a network of franchises and territories throughout Australia, with a solid growth pipeline, according to today’s ASX statement.

“We welcome the Resi franchisees, management and staff to the YBR group and look forward to leveraging our marketing platforms to significantly increase Resi’s lead flow as part of our combined group,” Mr Bouris said.

“The complementary skills and relative strengths of the YBR, Vow and Resi brands and businesses will combine to provide Resi franchisees, YBR Branch licensees and Vow brokers with unparalleled opportunities to build revenues and market position as we progress our strategy to be a leader in the 'non-bank' sector,” he said.

Resi director and founding shareholder Peter James, said the acquisition is a sound strategic move for the Resi business.

“YBR’s marketing and wealth management capabilities and partners should greatly assist Resi and its franchisees through the next exciting phase of its development,” he said.

YBR also announced that it has secured firm commitments to raise approximately $42.05 million via private placements by the issue of 60,071,429 ordinary fully paid shares in the capital of the company at an issue price of A$0.70 per share.

YBR had gone to market to raise $38 million in total, but with oversubscriptions, was successfully able to raise the total of $42.05 million.

YBR acquires Resi
mortgagebusiness
  • 23
    Days
  • :
  • 07
    Hours
  • :
  • 54
    Minutes
  • :
  • 01
    Seconds

SUBMISSIONS CLOSING SOON
Have you started yours?

Latest News

Customers have accused banks of withholding information from clients to prevent legal claims of misconduct. ...

Loans to owner-occupiers fell to the lowest level in September since 2013, according to ABS data. ...

Shareholders representing over 82 per cent of PEXA’s issued capital have approved the company’s $1.6 billion acquisition, according to a...

FROM THE WEB

podcast

LATEST PODCAST: How bank ‘simplification’ is aiding the non-bank sector

Is enough being done to ensure responsible lending?