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Resimac ahead in RHG race

21 October 2013 5:28PM
Resimac has elbowed its way to the status of preferred bidder in the contest to take over RHG, the remnant of Rams Home Loans.RHG said on Friday that Resimac had increased its cash offer to 50.1 cents a share.Resimac, in conjunction with the Australian Mortgage Acquisition Company, originally offered 43 cents a share in May.In July, Pepper Australia launched a competing bid for RHG, to which Resimac has now responded twice.The new offer values RHG at A$155 million, a rise of $25 million on the original offer.RHG's residual book of home loans is worth less than $2 billion, down from more than $14 billion when the then Rams sold its brand and network to Westpac in 2007.

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