Pero sells control in business

Mike Pero sells a majority stake of his mortgage broking business to a fellow Christchurch-based businessman.

Wednesday, March 10th 2004, 3:49PM

Mike Pero has sold a majority stake in Mike Pero Mortgages to George Gould (pictured).

Pero says the sale of the stake will help take the firm to a "higher level" and that he and Gould Holdings will each retain long-term shareholdings in the company.

Gould is chairman and through Gould Holdings, a major investor in two listed companies, Designer Textiles Limited and Vertex Group Holdings Limited.

Gould says that it will be business as usual under the new ownership structure. No staff positions are affected, nor are franchise arrangements or arrangements with the banks that the company services.

Pero says that the business, which he acquired full control of last year, was not on the market and the deal only evolved when Gould and Pero were introduced by Ernst & Young. A deal was settled last Friday with franchise holders in Auckland, Wellington and Christchurch being advised of the changed ownership structure at meetings today.

While it was only late last year that Mike Pero took 100% ownership from South Canterbury Finance Limited, he is the first to admit that "you never know what tomorrow will bring this opportunity was too good to turn away and with a track record like George's we expect to realise our objectives far sooner."

"We think it will sit very well in the public arena giving all customers, franchise owners and staff the opportunity to participate in the company's future progress."

Gould and Gould Holdings chief financial officer Kevin Arscott, have joined the board of Mike Pero Mortgages which also includes existing directors, Mike Pero and Humphry Rolleston. A new chief executive will be appointed.

Mike Pero has also entered a long-term sales and marketing contract with Mike Pero Mortgages, with the aim being for the company to continue to build its public profile and brand. "The business is very dear to me and I want to see it continue to succeed in the future. The new structure will allow me to focus on my favourite part of the business, which is marketing, and not get bogged down with general company management," Pero said.

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