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BANK of Queensland (ASX:BOQ) has signed a deal to acquire Investec Bank for $440 million, with shares in a trading halt following the announcement.
BOQ will fund the transaction through a fully underwritten accelerated renounceable entitlement offer plus excess capital.
“The acquisition provides BOQ with an opportunity to obtain a leading position in attractive specialist segments, delivering access to a client base consisting primarily of medical, dental and accounting professionals.
“Both organisations share a strong client-focus which is highly valued by the busy professionals who form their customer base.”
BOQ also reported a record first half-year result this morning, with $140.2 million in cash earnings after tax.
Grimshaw says it’s a clear indication the bank’s strategy is working – despite highly competitive market conditions.
“We maintained a focus on profitable growth rather than compromising margins or risk standards, building momentum in our new customer distribution channels, tightly controlling expenses while investing in future growth and building our customer-focused culture,” he says.
Trading resumes on April 16.
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