Mortgage business RHG, formerly RAMS Home loans, has accepted a sweetened takeover bid by lender Resimac, trumping a rival bid.
On Monday, RHG directors announced they had agreed to accept the latest bid of 48 cents per share as well as a three-cent-per share dividend, with total payments of 51 cents per share.
The total puts the company's value at $157.3 million.
Resimac earlier this month launched a 44.1 cents a share bid for RHG, which was accepted by the target company.
But this was countered with a late takeover bid by mortgage business Pepper which would see investors paid 46 cents a share, valuing the company at $142 million.
RAMS was floated on the Australian stock market in 2007, and bought by Westpac after being badly affected by the US subprime mortgage crisis.
The company's remaining mortgage book was rebranded as RHG.
On Monday, RHG issued a statement in which it said it would recommend shareholders accept the improved offer, put forward from a syndicate comprising Resimac and Australian Mortgage Acquisition Company.
"RHG considers acceptance of the counter-proposal provides a positive result for RHG's shareholders," the takeover target said.
A spokesman for the company said the takeover value of the company consisted of the 48 cents per share bid plus the three cents per share dividend.
RHG shares on Monday went into a trading halt, last trading at 49.5 cents.
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