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Bendigo and Adelaide Bank buy loan book


Bendigo and Adelaide Bank have agreed to buy Southern Finance's loan book and other assets.

Bendigo will acquire the loan book, equipment finance assets, the financial planning business and certain investments of Southern Finance.

Bendigo said the purchase price, which was not disclosed, would be used to repay Southern Finance note holders.

Last month Bendigo and Adelaide Bank bought the majority of assets of regional financial company Southern Finance Group for $290 million.

The transition period is expected to take about six months.

Bendigo and Adelaide Bank Managing Director Mike Hirst said the deal showed the value of Southern Finances assets freeing up the funds needed to repay its investors.

"Following the deal, the bank is well-positioned to support the financial goals of borrowers, and financial planning customers," Mr Hirst said.