Tuesday, October 16, 2007

Westpac a step closer to RAMS

Westpac and RAMS Home Loans Group have cleared a hurdle in the former's takeover of RAMS's branches and brand name, with Westpac satisfactorily completing due diligence on the target.


Both Westpac and RAMS said today that Westpac had found "no material adverse impacts" in the due diligence process.

On October 2, Westpac announced that it had reached agreement to acquire the branches and brand name of RAMS Home Loans for $140 million.

A condition of the agreement was that Westpac would find nothing in due diligence with material adverse impact on the assets, liabilities, financial position or the prospects of the RAMS franchise distribution business.

"Westpac completed its due diligence on October 16, and no material adverse impacts were found," Westpac said in a statement to the stock exchange this morning.

RAMS chairman John Kinghorn said the board continued to recommend the sale to Westpac and would seek approv! al by a vote of shareholders next month.

With shareholder approval, Westpac will take the RAMS brand name, its 53 franchises, 92 stores, and all the new business RAMS writes from November 15.

By: Alan Lim

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Source: http://www.news.com.au/business/story/0,23636,22600511-31037,00.html
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