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High level discussions have been held with a consortium of management and other parties about the potential sale of Strategic Finance, parent company Allco HIT says.
No formal agreements had been entered into. Further notification to the market would follow if a formal offer was received.
The board of Australia-based Allco said it intended to seek shareholder approval if a sale of Strategic Finance, its wholly-owned New Zealand-based property finance business, was to go ahead.
On Monday, Strategic said it was undertaking an intensive review of its business and loan book.
The finance company made the statement as part of a regular monthly report now required by market operator NZX.
Strategic said it complied with stock exchange rules and it continuously monitored its financial position.
"Given the current economic environment, including the impact caused by the recent high profile finance company failures, trading halts and the slow down in the property sector, SFL will be undertaking an intensive review of its business, including impairment analysis of its loan book prior to 30 June being SFL's financial year end," the company said.
- NZPA
