NZ Finance raises offer for Mike Pero

George Gould

New Zealand Finance yesterday renewed its takeover bid for Mike Pero Mortgages, upping its offer for the mortgage broker by almost $6 million.

New Zealand Finance, which last November bid 82c a share, said it would now bid $1.05 a share.

The new offer values the company at $26.3 million and falls within the 96c to $1.09 fair value assessment of the company by MPM independent advisers Crighton Anderson.

MPM shares were yesterday unchanged at $1, suggesting the latest offer will be more successful than last year's. Then it gained 55 per cent of the company, but that included a 54 per cent stake owned by South Island investor George Gould.

New Zealand Finance managing director John Callaghan said: "We are comfortable and happy with what occurred on the exchange after [the new offer] was revealed."

Mike Pero chief executive Jeff Staniland said the bid was positive.

"It is better that they have 100 per cent and can get on with life, rather than have us continue as a listed company with a board and they do the same. There's not a lot of logic in that," Staniland told NZPA.

Mike Pero's independent directors would consider the bid and make a recommendation to shareholders shortly.

The new offer price will give some relief to investors who acquired shares in the broker in May 2004, when they were floated at $1.

They have been staring at losses for much of the company's history. MPM met its prospectus forecasts, but after banks reduced commissions on brokered mortgages the shares plunged as low as 55c.