Pero retreats from Origin Pacific freight purchase

Mike Pero

Mortgage-broking millionaire Mike Pero said yesterday he had lost interest in purchasing the profitable freight arm of ailing regional airline Origin Pacific, frustrated by a poor sale process.

Pero had initially expressed interest in buying the freight business when Nelson-based Origin Pacific announced last month that it had been forced to ground passenger services because of financial difficulties.

Pero made an offer for the freight arm subject to due diligence but said he was "not satisfied with some of the conditions at this stage".

"To be perfectly honest, I've lost interest in the whole thing," he said. "I don't know where it's at because I'm not a director, but I've had little or no feedback from Origin."

Origin Pacific made an announcement to creditors last night confirming the "continuation of the profitable freight business, pending an evaluation of opportunities to maximise value in the company".

It said information regarding the freight business had been made available to a number of interested parties, but refused to comment further.

Courier company Freightways - which had also expressed an interest in buying Origin's freight arm - also declined to comment.

Pero purchased a 25 per cent stake in the struggling airline in 2004, becoming a director at the same time. Less than a year later he resigned from the Origin Pacific board but retained his shareholding.

In a recent interview with the Herald, Pero cited "strong differences" with company founder Robert Inglis for his departure.