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Mortgage Choice shareholders on Thursday voted in favour of the proposed acquisition of the company by REA Financial Services, a wholly owned subsidiary of REA Group.
More than 98% of shareholders voted to go ahead with the $244 million deal, while only 0.94% voted against it, according to a report by The Adviser. The acquisition needed a majority of 75% to pass. Mortgage Choice’s directors had unanimously recommended that shareholders okay the deal.
“We are very excited to be joining forces with REA,” said Mortgage Choice CEO Susan Mitchell. “The logic in bringing our businesses together is compelling, creating a business of scale with a strong human and digital offering. It allows us to assist more customers in a more effective way and accelerate opportunities for our network.”
The scheme of arrangement remains subject to a second court hearing, which is scheduled for 17 June, The Adviser reported. If the court approves the deal, the implementation date is expected to be 1 July. On that date, registered Mortgage Choice shareholders will receive a cash consideration of $1.95 per share.
The deal will make Mortgage Choice a wholly owned subsidiary of REA, along with franchise broking group Smartline. The deal will bring the total number of brokers under the group to 900, The Adviser reported.
Read more: REA Group receives key approval for $244 million Mortgage Choice takeover
The existing Mortgage Choice directors will resign once the deal is complete, and the company’s board will be reconstituted in accordance with REA’s instructions. The new board will review Mortgage Choice’s operations and organisational structure to determine if any major changes should be made.
Mortgage Choice is expected to continue to operate from its current locations, including its head office, according to The Adviser. REA has said that it intends to “continue the business and strategic direction of Mortgage Choice, including actively pursuing growth opportunities available to Mortgage Choice.”
Ryan Smith is currently an executive editor at Key Media, where he started as a journalist in 2013. He has since he worked his way up to managing editor and is now an executive editor. He edits content for several B2B publications across the U.S., Canada, Australia, and New Zealand. He also writes feature content for trade publications for the insurance and mortgage industries.
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