Bendigo and Adelaide Bank acquires Victorian agribusiness lender
Bendigo and Adelaide Bank will expand its rural lending and agribusiness capabilities after it announced the $1.78 billion purchase of Rural Finance Corporation of Victoria.
The purchase, to be completed by mid-July 2014, will be for all the assets and business of Rural Finance, including its loan book which is valued at $1.69 billion.
Rural Finance has 11 locations across Victoria, with the bank stating it would maintain the Rural Finance brand and branch network as it reflected the bank's support for rural and regional customers.
Bendigo and Adelaide Bank managing director Mike Hirst said the purchase reflected its commitment to agribusiness and rural and regional customers and to work alongside its own specialist agricultural business Rural Bank.
After the completion of the sale the two groups will have a loan book of more than $2.4 billion.
Bendigo and Adelaide Bank will also undertake a fully underwritten $230 million share placement to select institutional investors, as well as a non-underwritten share purchase plan to eligible shareholders in which they can purchase $5000 ordinary shares in the bank.
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