Bank of Queensland (BOQ) is set to acquire the majority of Investec Australia’s business after a competitive auction process, according to The Australian Financial Review.
The agreement was reportedly signed yesterday afternoon after BoQ outbid rival Bendigo and Adelaide Bank and ANZ Bank dropped out of the race. Macquarie Group, National Australia Bank, Pepper Australia and Archer Capital were all initially believed to harbour interest.
The Queensland-based bank is tipped to use the $450 million purchase to further its national footprint and may launch a capital raising of over $400m as early as today to fund the deal, the AFR said.
The bank last raised equity in 2012 and its share price has since doubled. It is due to announce its latest earnings today.