National Australia in talks to acquire Wizard
Dec. 17 - National Australia Bank is in talks to acquire the brand and Australian distribution network of non-bank
finance company Wizard.
Australia’s biggest lender is also in the final stages of negotiating to acquire up to A$4 billion of Wizard originated
prime mortgages. The mortgage portfolio comprises prime mortgages with a maximum loan-to-valuation ratio of 90% and is
100% mortgage insured, it said in a statement.
The bank said the purchase price isn’t material and won’t impact materially on NAB’s Tier 1 capital ratio. Funding
requirements associated with the mortgage portfolio can be accommodated within NAB’s existing funding plans for the 2009
financial year, it said.
The negotiations are well advanced, though a final decision on the deal hasn’t been made yet, NAB said. Shares of the
bank rose 1.3% to A$19.45 in early trading on the ASX. It has declined 51% in the past 12 months.
(Businesswire)
ENDS