Commonwealth Bank make strategic investment in Aussie
29 August 2008
The Commonwealth Bank Group today announced that it has reached an agreement with the founder and Executive Chairman of Aussie, John Symond to acquire a 33 per cent share in his industry leading company Aussie Home Loans.
The acquisition of a minority shareholding by the Group is a strategic holding and provides it with an additional investment in the strong and growing home loan industry in Australia.
Commonwealth Bank CEO Ralph Norris said, “The Australian mortgage and housing industries are the backbone of the economy and the purchase of a home remains the largest single investment made by many consumers. As Australia’s largest home loan provider, it makes good strategic sense to look at alternative investments in this industry that will continue to bring benefits to shareholders and consumers”.
“We understand that there are some consumers that seek the advice and assistance of mortgage brokers in helping them select a home loan option that best suits their needs and circumstances. As this market continues to develop, a strategic investment in one of the market leading providers in this industry is a natural fit for the Group.”
Mr Norris indicated that Aussie will continue to be an independently managed and run operation under the control of its successful founder, John Symond. The Bank expects Aussie to maintain and build on its existing position in the mortgage supply and broker markets.
The Group will have a minority representation on the Aussie Board, with no management involvement in the day to day running of the company.
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