With neither potential consumers nor lenders exhibiting curiosity within the business, RAMS’ destiny appears tied to its present proprietor, which purchased it throughout the GFC for $140 million or 1 / 4 of what it was value earlier than its mid-2007 itemizing.
Slow-going on divestments
In the 16 years since, it has shrunk considerably and is anticipated to be value as little as $10 million – a rounding error for the banking group capitalised at $89.4 billion on the ASX. RAMS has about 40 franchisees, however is so small that Westpac doesn’t present a breakdown on its earnings or mortgage guide in its monetary reporting.
Westpac first flagged it was reviewing its possession of RAMS in October, earlier than giving its bankers at Morgan Stanley the go-ahead to place out an IM in early February, as reported by The Australian Financial Review.
The kiboshed RAMS deal joins Westpac’s much-bigger funding platforms business, below the BT Panorama and Asgard manufacturers, whose sale course of was iced forward of June 30 outcomes final yr after bidders anticipated to satisfy worth expectations. It additionally deserted a sale of its Westpac Bank PNG and Westpac Fiji in October.
In 2021, it bedded down three divestments. It bought its basic insurance coverage business to Allianz for $725 million; lender’s mortgage insurance coverage business to Arch Capital Group for $350 million; and automobile vendor finance and novated leasing business to Angle Finance.
