Geneva Finance buys in Tonga

Geneva Finance  has reached agreement to acquire a 60% shareholding in Federal Pacific Finance Ltd, Tonga.

“We see this as a strategic stake in a Pacific Island finance operation, offering medium and long term growth opportunities into the Pacific Rim," Geneva managing director David O’Connell says. The purchase price of $3.81 mill represents, about 3.5% of Geneva total assets, compared to the group’s $110 mill asset base.

As the vendors are related parties, the independent directors, who have the responsibility of completing the necessary due diligence to ensure this transaction is in the best interest of all shareholders, in particular the minority shareholders, advise they are satisfied, subject to the completion of final documentation, that this transaction meets this standard.

Settlement will be a combination of Geneva shares, cash and vendor finance.