Federal Court of Australia approves merger Scheme of Arrangement involving Bermuda company’s subsidiary

The Federal Court of Australia has recently approved a merger of an ASX-listed non-bank lender and one of Australia’s mortgage pioneers.

In July 2016, Homeloans Limited informed the market of its plans to merge with securitisation pioneer and leading non-bank lender RESIMAC, in a deal that would create a significant mortgage lender with a combined portfolio in excess of $13 billion.

Following the approval by the two companies’ shareholders, court orders approving the scheme of arrangement were lodged with ASIC and made effective on Thursday, 13 October 2016.

The size of the non-bank lending giant now rivals some of Australia’s smaller banks.

RESIMAC shareholders will hold 72.5 per cent of the merged group while existing Homeloans shareholders will hold the remaining 27.5 per cent.

The group’s majority shareholder is a fund manager based in Bermuda.

A 16 September 2016 Bermuda Stock Exchange trading update showed that Hamilton, Bermuda-based Somers Limited, a financial services investment holding company, acquired the majority stake in RESMIAC (approximately 79 per cent) from Ingot Capital Management for US$88.5 million ($116.3 million).




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