AFG launches share buyback

Wholesale mortgage broker Australian Finance Group has launched a share buyback for up to 20 per cent of its capital, with smaller investors already accepting the deal.

West Perth-based AFG is an unlisted public company.

It's national managing director Brett McKeon told WA Business News the broker will buyback around 27 million shares for 30 cents each, with the offer made to all shareholders.

He said the buyback was a chance for the company to tidy up the share registry and provide an opportunity for some investors to exit the company should they wish to do so.

The buyback comes as the broker generates good profits, with its 2008 financial year net profit up 43 per cent to $18.3 million.

Mr McKeon said AFG reported a record $3.2 billion in mortgage loan applications last month, putting the company in a good position.

He also expects the Rudd government to extend the first home owners boost beyond the June 30 deadline, however believes the grant will be specifically targeted towards new home developments.