CHALLENGER Group, through its subsidiary Challenger Mortgage Management, subscribed to a further 31.7 million shares in Homeloans for $38 million.
Challenger will pay $1.20 per share to increase its stakehold in Homeloans to 40%.
Homeloans’ said the placement to Challenger will considerably strengthen the company’s capital base by approximately $44.7 million.
Challenger has agreed that Homeloans will be entitled to invest any proceeds of placements not used for the growth of the company in a fund nominated by Challenger until December 31, 2007.
Challenger’s deputy managing director Dominic Stevens and chief executive of Mortgage Management Brian Benari will also join the board of Homeloans.
Australian Property Journal
