Feb 22 (Reuters) - Bank of Queensland Ltd BOQ.AX :
* BOQ ANNOUNCES ACQUISITION OF ME BANK AND CAPITAL RAISING
* DEAL FOR $1.325BN
* ACQUISITION TO BE FULLY FUNDED THROUGH A $1.35BN EQUITY RAISING
* CURRENTLY EXPECTS TO ANNOUNCE 1H21 STATUTORY NET PROFIT GROWTH OF 60% - 65% AND 1H21 CASH NET PROFIT GROWTH OF 8% - 10%
* PRE-TAX ANNUALISED SYNERGY BENEFITS OF APPROXIMATELY $70 - $80M ARE EXPECTED BY END OF YEAR 3
* ACQUISITION EXPECTED TO BE LOW DOUBLE-DIGIT TO MID-TEENS CASH EPS ACCRETIVE
* PRE-TAX INTEGRATION COSTS ARE ESTIMATED TO BE $130 - $140M
* COMBINED, GROUP WILL HAVE PRO FORMA TOTAL ASSETS OVER $88BN
* 1H21 NIM IS EXPECTED TO BE ABOUT 3BPS UP ON 2H20
* COMPLETION OF ACQUISITION IS TARGETED BEFORE END OF BOQ'S 2021 FINANCIAL YEAR
* BOQ UNDERTAKING UNDERWRITTEN FOR 3.34 ACCELERATED PRO-RATA NON-RENOUNCEABLE ENTITLEMENT OFFER TO RAISE $1.0BN
* SEES COMBINATION OF BUSINESSES TO ACCELERATE DIGITAL STRATEGY TOWARDS CLOUD BASED COMMON DIGITAL RETAIL BANK TECHNOLOGY PLATFORM
* ACQUISITION IS ALSO EXPECTED TO BE CASH ROE ACCRETIVE, BY OVER 100BPS INCLUDING FULL RUN-RATE SYNERGIES IN FIRST YEAR
* PLACEMENT AND ENTITLEMENT OFFER WILL BE $7.35 PER SHARE
* EQUITY RAISING WILL RESULT IN ISSUE OF UP TO ABOUT 184 MILLION NEW ORDINARY SHARES
* CET1 EXPECTED TO BE ABOVE 10.0% AT END OF 1H21
* 1H21 DIVIDEND EXPECTED TO BE 17CPS INCLUSIVE OF NEW SHARES ISSUED THROUGH CAPITAL RAISE
* COMBINED, GROUP WILL HAVE PRO FORMA TOTAL ASSETS OVER $88BN, WITH TOTAL DEPOSITS OF MORE THAN $56BN
* SEES ADDITION OF ME BANK TO DOUBLE SIZE OF RETAIL BANK, INCREASE RETAIL EARNINGS CONTRIBUTION FROM ABOUT 36% TO MORE THAN 50% Source: Further company coverage: BOQ.AX