Wizard and AMS for sale: report
Australian Financial Investments Group (AFIG), which owns retail home lender Wizard and wholesale funds provider Australian Mortgage Securities (AMS), is reportedly up for sale.
Friday, July 16th 2004, 12:01AM
AFIG, which is owned in equal shares by Bouris, Kerry Packer’s Publishing & Broadcasting, ABN Amro and Deutsche Asset Management, has a loan book of more than A$18 billion ($20 billion).
The most likely buyer Challenger Financial Services, which has a focus on mortgage finance and connections to the Packer family, has baulked at the asking price of more than A$450 million, the paper says. Challenger, which until recently was chaired by James Packer, bought mortgage finance business Interstar last year.
Potential buyers are nervous about a housing market downturn, it says. AFIG also has a high cost structure and relatively narrow profit margins, it says.
Citigroup Smith Barney analysts estimate AFIG will report a 2004 net profit of A$30 million to A$35million.
In New Zealand, Wizard is about to open its 27th office says Wizard New Zealand head John Grant. Its loan book is now around the $700 million level and total lending in New Zealand, including that by AMS, is about $1.3 billion.
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