Australian lender Bank of Queensland (BOQ) is nearing a deal to buy smaller, privately-owned peer ME Bank, local media reported on Thursday, citing sources familiar with the matter.
The Brisbane-headquartered lender went into a trading halt earlier in the day, citing a proposed capital raising and finalization of the terms of a possible acquisition.
ME Bank has informed shareholders that it is close to finalizing a takeover deal with BOQ, the Sydney Morning Herald reported, without mentioning any deal value. [https://bit.ly/3jX0h5w]
BOQ is set to pay A$1.3 billion ($1.01 billion) for ME and is expected to sign a formal takeover deal in the coming days, the Australian Financial Review said, citing sources. (https://bit.ly/2NCLktj)
Set up in 1994, ME has struggled to achieve the commercial scale to compete with larger rivals in Australia, and has not paid its shareholders a dividend till date. The boutique bank is owned by a group of 26 larger industry super funds.
ME Bank was not immediately available for a comment, while a BOQ spokesperson declined to provide more details.
($1 = 1.2892 Australian dollars)
(Reporting by Shruti Sonal in Bengaluru; Editing by Devika Syamnath)
