Resimac Beats Pepper in RHG Takeover

RAMS Home Loans, now more familiar as the mortgage company RHG, has agreed to a takeover by Resimac, another high profile lender.

The directors of RHG have made its announcement this week, saying that they have agreed upon a 48 cents per share, with 3 cent per share divided from its new owners. Resimac, in total, made payments of 51 cents per share. RHG’s new value is now pegged at $157.3 million following this takeover.

In early July, Resimac has launched a bid of 44.1 cents per share for RHG, and had been duly accepted by the company. However, another mortgage business made an offer at 46 cents per share, with $142 million in total value. This was from Pepper, a rival of Resimac, which eventually lost to the latter.

In 2007, Westpac bought into RAMS Home Loans as the company was affected by the global mortgage crisis. It has since rebranded itself as RHG.

In its statement, RHG also encouraged its shareholders to accept the offer made by Resimac. “RHG considers acceptance of the counter-proposal provides a positive result for RHG’s shareholders.”

Trading for RHG’s shares in the market when this was announced was at 49.5 cents.