Gould in Pero deal with NZF

The controlling shareholder in Mike Pero Mortgages has agreed to sell his shares to New Zealand Finance Holdings as it seeks to take over the company.

NZF has entered into a pre-bid lock-up agreement with Gould Holdings in which Gould must accept NZF's 82c-a-share offer within three days of a full takeover launch.

Gould Holdings - which owns 54 per cent in Mike Pero - is an investment vehicle of Christchurch businessman George Gould.

It recently sold international advertising company iSite - New Zealand's second largest provider of "out-of-home advertising sites" - to Wellington International Airport for an undisclosed sum.

Shares in Mike Pero, issued at $1 in May last year, closed yesterday up 5c to 81c.

The stock dropped from 86c in February to a low of 55c in April as banks stopped paying commissions on Mike Pero-brokered mortgages.

This month, Mike Pero tried to mollify mildly grumpy but resigned shareholders at its annual meeting with an upbeat profit report and the company's launch into insurance broking.

NZF has said that it intends to launch a takeover next week.

- NZPA