Aug 12 (Reuters) - Australian Finance Group Ltd AFG.AX :
* AUSTRALIAN FINANCE GROUP TO MERGE WITH MORTGAGE AGGREGATOR CONNECTIVE
* CONNECTIVE GROUP PTY LTD WILL RECEIVE $60 MILLION IN CASH AND 30.9 MILLION AFG SHARES VALUING ACQUISITION AT $120 MILLION
* AFG IS CURRENTLY EXPECTED TO MAINTAIN A DIVIDEND PAYOUT RATIO OF BETWEEN 60 AND 80 PER CENT
* TRANSACTION IS EXPECTED TO BE EPS ACCRETIVE PRE- SYNERGIES IN FIRST FULL FINANCIAL YEAR