RHG board backs Resimat bid

RHG Ltd's board has unanimously recommended a takeover bid from a syndicate comprising Resimac Ltd and Australian Mortgage Acquisition Company Pty Ltd. 

In a statement to the Australian Securities Exchange, RHG said it recommended the bid in the absence of a superior proposal and subject to the independent expert "concluding and continuing to conclude" that the offer was in the best interests of RHG shareholders (see Alvin Pontoh's Housing recovery round the corner).

RHG, formerly RAMS Home Loans, has entered into a merger implementation deed with the Resimac syndicate, that would see it acquire 100% of all ordinary RHG shares for a cash consideration of 44.1 cents per share.

RHG also confirmed its intention to pay a fully-franked dividend of three cents per share. 

RHG said the payment was consistent with the group's policy of "paying excess cash flows to shareholders and is not conditional on the scheme being implemented, nor does it reduce the scheme consideration".

RHG said the combined payment of 47.1 cents per share represented a 17.8% premium on the closing price of RHG shares on July 5, and a 18.7% premium on RHG’s 30 trading day volume weighted average price as at July 5.