15/12/2021 - 12:17

BNK to sell Finsure for $151m

15/12/2021 - 12:17

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Perth-based digital bank BNK is selling its mortgage aggregator business to MA Financial Group for $151.6 million in cash, three months after starting a strategic review.

BNK to sell Finsure for $151m
BNK is selling its mortgage aggregator business Finsure. Photo: Attila Csaszar

Perth-based digital bank BNK is selling its mortgage aggregator business to MA Financial Group for $151.6 million in cash, three months after starting a strategic review. 

BNK Banking Corporation initiated the review in September after receiving “several unsolicited approaches from interested parties” and brought onboard Gresham and Mills Oakley to assist.

The review has resulted in the sale of BNK’s mortgage aggregator subsidiary Finsure Holdings and its related subsidiaries for $151.6 million in cash.

The platform acts as a conduit for its network of some 2,000 mortgage brokers to access approximately 65 lenders, including all major Australian banks.

Its loan book is estimated at $60.8 billion and has a run-rate of around $34 billion in settlements per annum.

Sydney-based MA Financial entered a trading halt yesterday ahead of the buy, flagging a potential “significant acquisition.”

In its rationale for the acquisition, the company said Finsure had demonstrated significant year on year growth and would allow it to capitalise on the digital evolution of financial services in Australia.

Under the share sale agreement, MAF has agreed to buy all issued shares in Finsure for $145 million and $6 million for the Finsure balance sheet.

BNK chair Don Koch, who was chief executive of ING Bank in Australia from 2009 to 2012, said he believed selling the business was a compelling outcome for stakeholders.

“While Finsure has been growing strongly, the opportunity to be part of MAF, a larger and more diversified financial services group, will accelerate Finsure’s ability to grow its presence in the Australian financial services market,” he said in an ASX release.

“Following the sale of Finsure, BNK will be a strongly capitalised digital bank with a clear and focused strategy to leverage recent initiatives to strengthen our competitive position.”

Mr Koch said he would continue to assess options regarding BNK’s strategic review.

BNK anticipates that a portion of sale proceeds will be distributed to shareholders.

Regulatory approval permitting, the sale is expected to be finalised in the first half of 2022.

BNK shares are up 16.91 per cent on the back of the deal to trade at $1.21.

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