We are thrilled to announce the completion of the acquisition of the remaining 52.5% interest in residential mortgage lender MKM (MKM). Total cash consideration of $11.4 million was paid comprising $6.6 million for shares not already owned by MA Financial and $4.8 million for the acquisition of outstanding shareholder loans.
We partnered with MKM in October 2020, acquiring at this time 47.5% of the company, with an agreement to move to control by purchasing the remaining shares in MKM over a five year period, ending June 2025.
Following the successful acquisition of mortgage aggregator Finsure, which completed in February 2022, a strategic decision was taken to move to full ownership and control of MKM at a date significantly earlier than previously planned. Having full control of MKM, alongside the ownership of Finsure will enable an acceleration of our growth into Australia’s ~$2 trillion residential home loan market across multiple initiatives.
MKM was established in 2004 and has an outstanding track record of mortgage lending. Following moving to control of MKM, MA Financial has plans to amplify MKM’s origination capacity, something which can be more readily achieved under 100% ownership.