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One of the country's biggest consumer finance businesses will be sold off by parent Fisher & Paykel Appliances - if the price is right.
Fisher & Paykel had received a number of unsolicited expressions of interest to acquire the business over the past few years and chief executive John Bongard yesterday said his company would now gauge how strong that interest was.
"We expect market consolidation will occur in the finance sector in the short to medium term and so the timing is right to consider our strategic options, including possible sale," he said in a sharemarket announcement.
"These will be attractive assets to potential buyers. However we will only divest the business if offers exceed our internal value expectations."
KPMG banking group partner Godfrey Boyce was surprised by yesterday's announcement given the importance of the finance arm to Fisher & Paykel's whiteware sales.
He said F&P Finance, including the Farmers finance division which was acquired four years ago for $188 million, had total assets of $720 million and a loan book of about $537 million. The business had net assets of more than $100 million.
Up for sale
* Fisher & Paykel Finance:Total assets of $720 million
* Loan book of $537 million
* Just under $500 million in secured borrowings including debentures
