Strategic Finance not for sale
Strategic Finance's parent, ASX-listed Allco isn't looking to sell its New Zealand finance company, as part of its restructure announced yesterday.
Tuesday, February 26th 2008, 5:08AM
Allco Finance announced yesterday that "it is developing a restructuring program to reposition Allco to focus on its core asset classes of aviation, shipping, rail and real estate."
"This proposed restructuring program would see Allco conduct an orderly disposal of 'non-core' assets to reduce debt." Some have read this to mean that it was selling assets such as Strategic Finance.
However, Strategic Finance chief executive Kerry Finnigan told www.depositrates.co.nz last night that was not the case.
"Of the assets they are selling we are not one of them," he says.
He said they didn't want to sell out of Strategic, and the parent was happy with Strategic's performance.
The company recently reported a strong, audited, six-month net profit after tax of $14.64 million for the six month period ending December 31.
He says it's business as usual for Strategic, even if they were for sale. The issue, he says, is that if they were on the block then there would be speculation about who would be the new owner.
Finnigan says that reinvestment rates are around 50% at the moment, which is lower than he would like. However, the recent profit announcement has helped bolster support in the company.
He says because of the issues facing the sector companies like Strategic have to pay more for debenture money and and also communicate more regularly with investors.
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