CBA finalises buyout of Aussie John's remaining stake in Aussie Home Loans

CBA finalises buyout of Aussie John's remaining stake in Aussie Home Loans
CBA finalises buyout of Aussie John's remaining stake in Aussie Home Loans

"Aussie" John Symond's ownership of his mortgage broking empire has come to an end. 

The Commonwealth Bank of Australia has finalised the purchase of Symond's remaining 20 per cent stake in Aussie.

The Australian Financial Review says the price eclipsed initial expectations. 

The payment, which was made via 2.1 million CBA shares at $78.54 apiece, came in at almost $164 million.

It was well ahead of initial expectations of as much as $90 million.

Symond is said to have been given the option to take stock or cash this time round, but opted for the former as he did in previous sell downs. 

Sources said he had confidence in the domestic banking system and CBA's prospects, despite the bank's AUSTRAC and regulatory woes. 

Street Talk said the last time CBA moved on Aussie was in 2012 when it increased its holding from 33 per cent to 80 per cent.

That deal was said to value the broker at $420 million, whereas the latest sell down delivers Aussie an $820 million valuation.

CBA's latest results showed home loans originated through its proprietary channels, such as branches, accounted for 57 per cent of new mortgages as at June 30. Loans through brokers sat at 43 per cent.  

It reflected a move away from broker originated loans when the split between the two channels was 50 per cent each just a year ago.

Tags: 
Aussie Home Loans Mortgage Broking

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