Mortgage lending company, Homeloans Ltd
(ASX:HOM) is looking to merge with RESIMAC, another non-bank lender.
Homeloans entered into a Scheme Implementation Agreement with RESIMAC for the purpose of this merger.
Also, Homeloans will issue new shares to RESIMAC shareholders, and acquire all the shares in RESIMAC.
The company says this transaction will create a leading non-bank lending business with a combined loan portfolio exceeding $13 billion in the year ended 30 June 2016.
The company says Homeloans shareholders will attend an Extraordinary General in October to approve the transaction.
Homeloans reported a net profit of $2.8 million at 31 December 2015.
