Bank of Queensland shares slumped in March 2020 and performed badly until late May. However, since then, the financial sector has been boosted by the monetary policy and Bank of Queensland shares have cut-off all its losses – returning close to 40% in the past 6 months.
Members Equity Bank or ME Bank was founded 27 years ago and they have distinguished themselves as an alternative to traditional banks for Australians. It operates as a direct bank without any branch network. They have never paid a dividend to shareholders.
Earlier today, BOQ announced that they will be acquiring ME Bank completely in a deal that is worth $1.325 billion. The majority of the acquisition will be funded by the $1.3 billion capital raise that BOQ has initiated. The acquisition is reported to bring geographical diversification to the Bank of Queensland. The deal is also bid to deliver benefits in the range of $70 million and $80 million over a 3 year period.
The capital raise being done by the Bank of Queensland is expected to issue shares at a 12% discount at $7.35 per share. BOQ is a beneficiary of steps taken to kick start Australia’s economy in 2021.
Bank of Queensland shares ended trading at $8.41 a share today.
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