Little value in RHG remnants
RHG attracted no real bids for the remnants of its declining home loan business, the firm advised the ASX yesterday. RHG will still proceed however with its planned distribution of capital to investors of 88 cents a share. A big bank - either National Australia Bank or Westpac, two of RHG's warehouse funders - is the most likely buyer of the residual assets of RHG, outside of the primary home loan pools. A tender conducted by Deloitte Corporate Finance attracted "no conforming offers or any indicative offers with a reasonable likelihood of completion", RHG said. RHG is yet to set a date for an extraordinary general meeting to consider the planned share buyback, structured as a return of capital of one cent and a dividend of 87 cents. The firm first announced the buyback in November 2010. RHG is waiting for an income tax ruling before pushing ahead with the plan.