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Pero under takeover offer from NZ Finance

New Zealand Finance Holdings is to launch a full takeover bid for Mike Pero Mortgages next week.

Friday, November 18th 2005, 12:30PM

by Jenny Ruth

The Auckland-based finance and mortgage broking company has already reached an agreement with Mike Pero's 54% shareholder, Christchurch businessman George Gould to accept the takeover offer within three business days after the offer has been dispatched.

NZ Finance plans to offer 82 cents a share and 2 cents an option for the rest of the company.

Mike Pero shares were trading at 76 cents ahead of the proposed offer being announced.

The company was floated in May 2004 at $1 a share, valuing the company at $25 million. Mike Pero employees and franchisees were offered up to 800,000 free options exerciseable at $1.20 before November 2006, getting one free option for every share they purchased. There were 645,500 options issued, meaning the NZ Finance offer values the company at $20.63 million.

NZ Finance has previously made it clear that a major aim is to increase its distribution capability and this takeover is consistent with that objective, although managing director John Callaghan isn't saying much at this stage.

"There's a formal process that we have to go through so I don't feel it's appropriate to comment at this point in time," Callaghan says.

Given that Gould has already agreed to sell, NZ Finance already has effective control. Under that agreement, Gould will receive just over $11 million for his stake.

In March last year ahead of the float, Gould bought the Mike Pero Mortgages business from its founder of the same name for $15 million and Mike Pero bought back a 10% stake for $1.5 million which was diluted back to 6% as part of the float process.

Mike Pero shares haven't traded since the offer was announced but have been bid higher. New Zealand Finance shares last traded at 98 cents. NZ Finance floated in October 2004 at 30 cents a share, valuing the company at $20.7 million. Its current market capitalisation is $75.1 million.

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 5.65 5.55 5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society ▼8.60 6.75 6.40 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 5.95 6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - 6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.49 6.49 6.49
TSB Special 7.89 5.69 5.69 5.69
Unity 7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.10 6.05 5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.02 5.79 5.69

Last updated: 20 November 2024 9:45am

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