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Bank of Queensland (ASX:BOQ) completes ME Bank purchase

ASX 200
ASX:BOQ      MCAP $4.253B
01 July 2021 14:50 (AEDT)
Bank of Queensland (ASX:BOQ) - Managing Director & CEO, George Frazis

Source: Queensland Times

Bank of Queensland (BOQ) has completed the purchase of Members Equity Bank (ME Bank) for $1.3 billion.

Earlier this year, the company announced the acquisition beating the Big Four. Funds to purchase ME Bank was raised through a capital raise.

BOQ and ME Bank will continue to operate as separate authorised deposit-taking institutions (ADI) in the short term with no immediate changes expected for customers of either business.

CEO and Managing Director George Frazis says this is an exciting day for the BOQ Group.

“The acquisition of ME Bank is strategically aligned and financially compelling. It further strengthens our multi-brand strategy, delivers material scale, provides portfolio diversification and enables the acceleration of the digital strategy towards a common digital Retail Bank technology platform.”

“Today is a defining moment in the transformation of the BOQ Group. The completion of the acquisition unlocks new benefits for our shareholders, customers and people, and is a critical milestone in our multi-brand strategy to create a real alternative to the big banks,” Chairman Patrick Allaway said.

Following the acquisition, the BOQ directors will remain in their existing positions on the BOQ Board. BOQ board has also replaced the Board of Directors of ME Bank, with each ME Bank director resigning.

On the market, BOQ is down 1.54 per cent and is trading at $8.97 per share at 3:16 pm AEST.

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