A listing and a merger

One finance company moved closer to becoming listed yesterday while two building societies proposed a merger.

Friday, December 9th 2005, 6:33AM

Finance company Lombard moved a step closer to being a listed company yesterday with the shareholders in Pure New Zealand approving resolutions to acquire Lombard Finance and Investments.

Pure is working to settle the acquisition of Lombard Finance before Christmas. Once settled it will rename itself Lombard Group.

The company says in a statement to the NZX that a further announcement will be made to advise shareholders when settlement and renaming has been effected.

"I am delighted that the transaction has been approved and that Lombard is now on the verge of being a listed company. I look forward to driving Lombard as a growing and highly successful listed company," Lombard Group chief executive designate and major shareholder Michael Reeves said.

Also yesterday two Canterbury-based building societies, ABS Canterbury and the SMC Building Society, agreed to terms for a merger.

The merger proposal will be placed before their respective members for approval early in the New Year.

The merger proposal has the unanimous support of both boards, the chairmen of both companies - Graham Kennedy (ABS) and Richard Calvert (SMC) said.

"The agreement to take the merger proposal to our respective members follows an amicable and careful negotiation that we believe leads to a positive outcome for both businesses," they said.

"Looking forward, both businesses can see the logic of pooling their existing customer bases in the pursuit of an enhanced market presence. We are also motivated by the potential to build market share based on a strong Canterbury identity and the personalised customer services that differentiate us within the traditional banking sector."

"There are a substantial number of players in the financial services market after the past few years of rapid growth in the economy and we believe the merger will sustain our competitiveness and position us to meet any future challenges."

Under the proposal approved unanimously by both boards, the vehicle for the merger will be publicly listed ABS Canterbury. The effective merger date is April 1, 2006.

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