Commonwealth Bank of Australia said on Wednesday it will combine its Aussie Home Loans business with Lendi, an online loan platform, creating a business with one of the largest mortgage broker networks in the country.
Australia's largest bank will hold a 45% stake in the combined business while existing Lendi shareholders will hold 55%. CBA will also receive a deferred consideration and pre-completion dividend totalling A$105 million ($79.3 million).
"We believe the combined business will have a stronger platform to offer enhanced digital capabilities for Aussie brokers and a superior experience for customers," CBA Chief Executive Officer Matt Comyn said in a statement.
Aussie Home Loans manages over A$70 billion in home loans. Lendi, which manages more than A$7 billion in home loans, counts Macquarie Group and Australia and New Zealand Banking Group as minority shareholders.
The deal is expected to complete by the middle of 2021.
($1 = 1.3238 Australian dollars)
(Reporting by Arundhati Dutta in Bengaluru; editing by Richard Pullin)
