Media speculation is that Mark Bouris’ Yellow Brick Road (ASX:YBR) may be looking to merge with Homeloans Limited (ASX:HOM) to drive its growth as a mortgage broker.
This would also drive profitability given that Homeloans – a $62 million market cap – generated $6.2 million in after-tax profit in 2014.
Homeloans is backed by National Australia Bank (ASX:NAB) and Macquarie Group (ASX:MQG).
The transaction with Homeloans is believed to be just one of the deals Yellow Brick Road is working on to drive its growth as a mortgage broker.
Macquarie already owns an 18.4% stake in Yellow Brick Road.
Both Yellow Brick Road and Homeloans have released announcements to the Australian Securities Exchange that neither deny nor confirm the speculation.
