Trading Room home page

RHG in talks over loan book sale

Market watch top headlines

Australian reports

World reports

Stocks to watch

ARI, OGC, AQG, RCT, SYD,

SYDNEY, Feb 11 AAP

February 11 2013, 7:37PM

Listed home loan provider RHG has confirmed it is holding discussions with a party over the sale of part, or all, of its loan book after an approach.

RHG did not elaborate on the identity of the party but media reports have named Sydney-based non bank lender Resimac as the interested party.

RHG, formerly known as RAMS Mortgages Corp, went into a trading halt on Monday and last traded at 46.5 cents a share.

"Discussions are not concluded and there are complex transactional and commercial issues involved," RHG told the Australian Securities Exchange in a statement issued after the close of trading.

"Until these have been resolved, it is not certain that a final proposal will be made or that any transaction would proceed.

"Any final asset-level proposal would require shareholder approval, and may require third-party consents."

RHG said it would update shareholders if and when a final proposal was agreed.

RHG said it continued to operate its mortgage book as a closed book and its business remained in wind down and accordingly was an amortising asset.