Non-bank lender Resimac has described a rival offer for residential lender RHG as inferior, highly conditional and not in the interests of the target's shareholders. Resimac is competing with Pepper Australia to buy RHG, the rump of non-bank lender RAMS, which was a competitor to the big banks before the global financial crisis.
Resimac has offered 49.5¢ cash per RHG share. But Pepper Australia and listed investment company Cadence Capital, which have a 17 per cent stake in the target, this week raised the cash component of their bid by 1¢ a share. The offer now comprises 36¢ a share in cash and one share in Cadence Capital for every 10 RHG shares.
Resimac said Pepper's revised offer pushed RHG shareholders into accepting shares in Cadence, which are not well traded. In response, RHG said it did not "endorse or comment on the statements by Resimac".