Financial Stock News Bendigo Bank (BEN)

Bendigo Bank ASX BENBendigo Bank (BEN) provides retail banking, commercial banking and wealth management services through Community Bank and Bendigo-owned branches across Australia.

On 26 October, BEN announced plans to buy Elders’ (ELD) 40% stake in agribusiness lender, Rural Bank, for $165 million, which would result in BEN owning 100% of the bank.

ELD, which is a company that operates in traditional rural services businesses, hardwood plantation management, and timber processing, has been among the shares to sell in recent months given its massive debt problems.

For BEN, the acquisition will be immediately cash EPS and ROE accretive.  ELD will receive the sale price plus $11 million in dividends, resulting in a profit of approximately $27 million.

The deal is subject to regulatory and ELD’s lender approval.

ELD soared 4.5% on the day of the announcement, making it one of the better performers in the Australian Share Market.

Get daily financial stock news on BEN and more, with a free trial.