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Aggregation group Finsure has officially been sold by BNK to MA Financial Group for $152.2 million.
BNK Banking Corporation Limited (BNK) has completed the sale of its fully owned subsidiary Finsure Holding Pty Ltd (Finsure), and its related aggregation division subsidiaries, to MA Financial Group.
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The deal completed on Monday (7 February) when MA Financial Group made payment of $1.45 million. There was also a cash adjustment under the share sale agreement of $7.225 million.
The business is expected to boost MA Financial’s lending arm. As at 30 September, Finsure serviced more than 2,050 brokers and managed a loan book of around $60 billion.
MA Financial said it was “pleased” to complete its acquisition of Finsure Holding Pty Ltd and its subsidiaries.
John Kolenda, co-founder and chief executive of Finsure, will continue in his role as CEO of the aggregator business.
Speaking to The Adviser about the sale, Finsure CEO Mr Kolenda said that the transaction represented “a new and exciting chapter in the Finsure success story”.
“While Finsure has been growing strongly, the opportunity to be part of MA Financial Group, a larger and more diversified financial services group, will accelerate Finsure’s ability to grow its presence in the Australian financial services market,” he said.
“The strong financial position of MAF provides Finsure with exciting opportunities to realise our growth agenda and provide additional value to our broker network.
“Looking ahead, Finsure is uniquely positioned as a scalable, technology-enabled platform with a differentiated service proposition to become one of the most powerful pieces of financial infrastructure in the Australian residential mortgage market.
“MAF can support Finsure in this journey through its access to capital, credit & lending capabilities and technology expertise.”
With the sale of Finsure now complete, Mr Kolenda will cease to be a director of BNK effective 7 February 2022.
BNK chairman Don Koch commented: “On behalf of the board and shareholders, I want to acknowledge and thank John for his significant contribution to the company.
“John has been instrumental in building Finsure into one of the country’s largest and most successful mortgage aggregators, and he will continue to lead that business with distinction under MA’s ownership.”
BNK has said that the gain from the Finsure sale is approximately $100 million (before tax), which will be reflected in BNK’s second-half results. It expects that a distribution in respect of a material portion of the Finsure sale proceeds will be made to shareholders “in the third quarter of calendar year 2022”.
[Related: Finsure sale clears regulatory approval]
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